Former FTX CEO is Released on $250M Bail
The Southern District of New York has just set a bail of $250 million for former FTX CEO Sam Bankman-Fried, who has been released into the care of his parents.
According to federal prosecutors, the amount set is “the highest” in the history of pre-trial hearings.
The agreement did not require the actual deposit of funds, but became a “guarantee of a personal guarantee.” The founder of the exchange must now appear in court if necessary, and his release is secured by the parental home in Palo Alto.
The bail includes a ban of financial transactions exceeding $1,000, house arrest and wearing an electronic bracelet. If he violates the agreement, he might have to pay $ 250 million.
Miriam Bayer, a professor of law at Brooklyn Law School, has explained:
“When a loved one or family member signs the bond documents, the non-appearance of the violator in court affects other people, namely the signatories, who are also subject to the requirements. This is a more efficient way to ensure the presence of a rich person at a court session.”