Sam Bankman-Fried who was charged with fraud cases for looting millions of money from the public walked out of the Manhattan courthouse, after his parents, both Stanford law school professors, agreed to pay the $250 million bond and asked to remain in the country for further charges that related to swindling money from customers while running the FTX trading platform, which became the world’s second-largest cryptocurrency trading platform.
Bankman Fried earned $32 billion earlier this year through FTX which was founded by him back in 2019, making him one of the billionaires in the world, and contributed to millions worth of political campaigns for both republicans and democrats parties
The one-time billionaire is now at home arrest in his parent’s home in Palo Alto, fleeing would result in the government confiscating the family’s assets including the Palo Alto home, and up to $250 million.
FTX’s Bankman-Fried Released On $250 Million Bond For ‘Epic’ Fraud
The bail package offered to Sam Bankman-Fried, required them to surrender his passports as well the FTX owner will undergo mental health treatment and evaluation, according to Nicolas Roos. Before returning to the US, the Bankman was detained in the Bahamas for the last few weeks.
While he was en route to the united states from the Bahamas, his top associates Carolyn Ellison, 28, and Gary Wang, 29, who were the former executive of chief executive of a trading firm, Alameda Research, and previous co-founders of the FTX, were arrested after pleading guilty to the fraud charges, securities fraud, and commodities fraud.
The two of the top associates have been cooperating ever since the arrest as per US attorney general Damian Willians, who also warned other fraudsters to come forward before getting caught. As they are moving quickly to apprehend whoever participated in the misconduct of FTX and Alameda.
As per the prosecutors and regulators, Sam Bankman-Fried has been involved in several illegal schemes to loot money from customers and investors for personal gain as well he was the brain behind all these scams and if convicted he could face decades in prison before the judge who would precede his case on January 3.
His bail conditions also include that he will not open any new credit card lines, start a business, or take part in any financial transactions larger than $1000, without the permission of the honorable court.
In the courtroom, Bankman Fried did not utter a single word except “Yes, I do” answering the judge’s question which was whether he understood that he could face arrest or pay the $250 million bond.
Despite several statements from bank man-fried that he never intended to fraud his customers, investors, or anyone, he was accused of a multi-billion dollar fraud on his investors and using customers’ money for personal benefits such as donating to political campaigns and trading in the Alameda research.
Over $8 billion has been missing from the customer’s funds, resulting in FTX’s filing for bankruptcy protection on November 11. The new CEO and successor of FTX, John Ray, accuses it was a complete failure of corporate control, which cannot be revamped immediately.
The former FTX owner, Sam Bankman-Fried reached great heights through his role in the crypto trading platform which was established in 2019.
He rose to fame by becoming one of the largest billionaires in the world, as well as promoting cryptocurrencies in the super bowl, after hiring the comic actor and writer Larry David to appear in the TV ad.
The entire crypto empire collapsed within barely three years after customers started pulling their money due to burning questions against the former CEO Sam Bankman-Fried about his financial dealings.