SBF Released for $250 Million. FTX Collapse Update

Earlier this month SBF was arrested in the Bahamas. The first hearing took place and he was released on a $250 million bond package. Here comes an update to the story.

Sasha Markevich

Dec 29, 2022 - 2 min read

What has happened before?

FTX crisis started back in November . It had a huge impact on the whole crypto industry and made the crypto winter even colder. On Now 11 the company and its affiliates filled for bankruptcy. The next day FTX CEO Sam Bankman-Fried resigned. On Dec 12 Sam Bankman-Fried was arrested in the Bahamas. United States District Court filed eight federal criminal charges against him which are connected to fraud, money laundering and even obstructing the Federal Election Commission’s functions. The US assistant attorney called the case “fraud of epic proportions”. SEC charged SBF with defrauding investors and customers. Commodity Futures Trading Commission also has filed a lawsuit against him.

Read more about #FTXcollapse here

What is going on now?

The first hearing took place.

“The defendant has achieved sufficient notoriety it would be impossible for him to continue financial transactions — this notoriety also goes to risk of flight. He would be recognized. So I am going to permit release,” - said Federal Judge Gabriel Gorenstein.

Sam Bankman-Fried was released on a $250 million bond package on Dec 22 and this might be “highest-ever pretrial bond,” assistant US attorney said. SBF is to stay with his parents. Actually he didn’t pay anything - the bond is secured by his parents house, by their signatures and by signatures of two other individuals with “considerable” assets (according to some sources these the bond must be signed by Jan 5).

Judge Gorenstein said SBF would require “strict” supervision. He will have to to wear an electronic monitoring bracelet and submit to mental health counselling. SBF is also not allowed to open any new lines of credit of more than $1,000.

At the same time SEC charged Caroline Ellison, the former CEO of Alameda Research, and Zixiao (Gary) Wang, the former Chief Technology Officer of FTX Trading, “for their roles in a multiyear scheme to defraud equity investors in FTX”. The two FTX top executives pleaded guilty to related fraud charges and according to CNBC are cooperating with law enforcement.

What's next?

SBF will face his next hearing in New York City on Jan. 3., where he’ll enter his plea and be prosecuted. We will keep you updated!