Sam Bankman-Fried released on $250 million bail

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Co-founder of the FTX cryptocurrency exchange Sam Bankman-Fried, a suspect in a multibillion-dollar fraud, has been released by a New York federal court on bail of $250 million.

Yesterday, December 22nd, Sam Bankman-FriedBankman-Fried appeared in federal court in New York, and Judge Gabriel Gorenstein agreed to release him on bail. Bankman-Fried's parents' home in Palo Alto, California, was offered as collateral. Note that according to American law, assets worth 10% of the collateral amount can be used as collateral.

Lawyers have also prepared an extensive listrestrictions that Sam Bankman-Fried must not violate in order to remain free during the investigation. For example, he cannot take out new loans or make financial transactions in excess of $1,000. In addition, he is prohibited from leaving his home except for drug treatment and therapy.

Sam Bankman-Freed handed over hispassport and undertake to wear a tracking device. According to Judge Gorenstein, such measures will provide a sufficient degree of confidence that the founder of FTX will not escape. In addition, given the financial nature of the crimes, Bankman-Fried is unlikely to pose a threat to anyone, the judge said.

However, a partner at the law firm Baker BottsAndrew Lankler fears that there is a fairly high probability of Bankman-Fried's escape. He cited the example of Bernard Madoff, who was arrested in 2008 on charges of creating a $50 billion pyramid scheme. He was released on $10 million bail. Madoff subsequently received 150 years in prison and died in custody. There is a risk that Bankman-Fried will not want to repeat Madoff's fate and will try to escape.

Earlier, Alameda Research top manager Caroline Ellison and FTX exchange co-founder Gary Wang pleaded guilty to fraud. They are cooperating with the investigation.