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Bankman-Fried granted $250m bail by US court

Fri, Dec 23rd 2022, 06:00 AM
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ONE day after being extradited to the United States, Samuel Bankman-Fried, former CEO of the failed cryptocurrency exchange FTX, was released on a $250m bond while he awaits trial on several fraud charges.

At yesterday’s arraignment in New York, Bankman-Fried appeared before Judge Gabriel Gorenstain and was not required to enter a plea.
#“Under the bail agreement, Bankman-Fried will be monitored via an ankle bracelet. He was required to surrender his passport and to agree to mental health and substance abuse treatment,” the UK Guardian reported yesterday.
#According to the newspaper, Judge Gorenstain warned Bankman-Fried that if he violated any of his bail conditions a warrant for his arrest would be issued and his parents would be responsible for the $250m bond.
#Bankman-Fried reportedly spoke once at yesterday’s hearing when asked by Judge Gorenstain if he understood the conditions of his bail and the consequences surrounding it.
#According to reports, he responded: “Yes, I do.”
#The 30-year-old is faced with eight fraud charges before the Southern District of New York. These include two counts of wire fraud and two counts of conspiracy to commit wire fraud. He also faces charges of conspiracy to commit commodity fraud, conspiracy to commit security fraud, money laundering conspiracy and conspiracy to defraud the United States.
#The Guardian reported that Bankman-Fried appeared to be “gaunt” and “tired” during the hearing.
#After spending a week on remand at the Bahamas Department of Correctional Services (BDCS), the former crypto giant waived his right to formal extradition proceedings on Wednesday.
#In a statement, Attorney General Ryan Pinder said the written consent by Bankman-Fried to be extradited without formal extradition proceedings “satisfies the requirements” of the extradition treaty between The Bahamas and the US and this nation’s Extradition Act.
#Bankman-Fried left the country Wednesday night after he was escorted onto a plane at Odyssey Airport by local and US authorities.
#FTX, Alameda Research, and “dozens other affiliated companies” filed a bankruptcy petition in Delaware last month after facing a liquidity crisis.
#The US Department of Justice and the Securities and Exchange Commission are said to be focusing on whether FTX founder and FTX used customers’ deposits to fund bets and trading activities at his hedge fund, Alameda Research.
#Client funds are supposed to be kept separate from company assets, and there were suggestions the FTX founder has committed the “ultimate sin” by tapping into FTX’s custodial assets to fund Alameda Research.
#The embattled former billionaire had previously acknowledged mistakes that led to the crypto giant’s downfall, but denied claims of deliberate wrongdoing, as he stated his commitment to restoring funds to customers.
#Two of the former FTX CEO’s colleagues pleaded guilty to criminal charges and are cooperating with investigators.
#“The hearing comes after federal prosecutors revealed that Caroline Ellison, 28, former CEO of the crypto hedge fund company Alameda Research and Bankman-Fried’s ex-girlfriend, and Gary Wang, 29, a co-founder of FTX, had pleaded guilty to criminal offences connected to the collapse,” The Guardian reported.

At yesterday’s arraignment in New York, Bankman-Fried appeared before Judge Gabriel Gorenstain and was not required to enter a plea.

“Under the bail agreement, Bankman-Fried will be monitored via an ankle bracelet. He was required to surrender his passport and to agree to mental health and substance abuse treatment,” the UK Guardian reported yesterday.

According to the newspaper, Judge Gorenstain warned Bankman-Fried that if he violated any of his bail conditions a warrant for his arrest would be issued and his parents would be responsible for the $250m bond.

Bankman-Fried reportedly spoke once at yesterday’s hearing when asked by Judge Gorenstain if he understood the conditions of his bail and the consequences surrounding it.

According to reports, he responded: “Yes, I do.”

The 30-year-old is faced with eight fraud charges before the Southern District of New York. These include two counts of wire fraud and two counts of conspiracy to commit wire fraud. He also faces charges of conspiracy to commit commodity fraud, conspiracy to commit security fraud, money laundering conspiracy and conspiracy to defraud the United States.

The Guardian reported that Bankman-Fried appeared to be “gaunt” and “tired” during the hearing.

After spending a week on remand at the Bahamas Department of Correctional Services (BDCS), the former crypto giant waived his right to formal extradition proceedings on Wednesday.

In a statement, Attorney General Ryan Pinder said the written consent by Bankman-Fried to be extradited without formal extradition proceedings “satisfies the requirements” of the extradition treaty between The Bahamas and the US and this nation’s Extradition Act.

Bankman-Fried left the country Wednesday night after he was escorted onto a plane at Odyssey Airport by local and US authorities.

FTX, Alameda Research, and “dozens other affiliated companies” filed a bankruptcy petition in Delaware last month after facing a liquidity crisis.

The US Department of Justice and the Securities and Exchange Commission are said to be focusing on whether FTX founder and FTX used customers’ deposits to fund bets and trading activities at his hedge fund, Alameda Research.

Client funds are supposed to be kept separate from company assets, and there were suggestions the FTX founder has committed the “ultimate sin” by tapping into FTX’s custodial assets to fund Alameda Research.

The embattled former billionaire had previously acknowledged mistakes that led to the crypto giant’s downfall, but denied claims of deliberate wrongdoing, as he stated his commitment to restoring funds to customers.

Two of the former FTX CEO’s colleagues pleaded guilty to criminal charges and are cooperating with investigators.

“The hearing comes after federal prosecutors revealed that Caroline Ellison, 28, former CEO of the crypto hedge fund company Alameda Research and Bankman-Fried’s ex-girlfriend, and Gary Wang, 29, a co-founder of FTX, had pleaded guilty to criminal offences connected to the collapse,” The Guardian reported.

Click here to read more at The Tribune

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