While the first trials linked to the FTX scandal end with very long prison sentences, it seems that the founder of the cryptocurrency exchange Sam Bankman-Fried was released on bail and he will be able to safely return to his own home, pending the completion of the process.
The news comes after, in recent days, Bankman-Fried had said yes to extradition from the Bahamas to the United States, probably for the poor conditions in Bahamian prisons. According to New York Times and the CNBCthe former FTX CEO was released after posting a $250 million bail, partly backed by Bankman-Fried’s parental home.
At the moment, Bankman-Fried is accused of eight different crimes, along with several civil lawsuits filed by the US SEC and CFTC against him. If the trial were to take place in the manner and with the judges who have already tried his former colleagues Gary Wang and Caroline Ellison, the founder of FTX would risk a penalty comparable to thelife sentence in an American penitentiary.
Now that he has been released on bail, Bankman-Fried will live in San Francisco with his parents, two well-known law professors at Stanford, and will have to wear an electronic device to constantly monitor his position. The ex-CEO of FTX will release a testimony on January 3 nextin New York City Court. Probably, in the meantime Bankman-Fried will also be forced to stop using social media such as Twitter and Zoom.
New York District Attorney Damian Williams commented on recent events explaining that “last week, we announced a lawsuit against Samuel Bankman-Fried for a fraud scheme he has contributed to the collapse of the FTX exchange and for a financial scheme that sought to influence Washington policy. As I said, the investigation is still ongoing, but it’s moving quickly.”