How Sam Bankman-Fried (SBF) Paid For His $250M Bail!
After recently being extradited to the United States, many in the crypto community are questioning just how former FTX CEO Sam Bankman-Fried was able to secure his $250M bail.
SBF Released From Custody
On December 22nd, Sam Bankman-Fried was officially released from custody on a $250 million “appearance bond” agreement, meaning that Bankman-Fried will need to comply with specific restrictions while awaiting his fraud trial.
According to Thursday’s hearing in New York, SBF’s bond was reportedly the “highest ever pre-trial bond” proposed by the feds, and would require the former CEO to stay house arrested, living in San Francisco with his parents until his next scheduled hearing on January 3rd in New York City.
— Alpha Blocs (@TheAlphaBlocs) December 23, 2022
Paying For The $250M Bail
Just weeks ago in a series of interviews he did before initially being arrested, SBF admitted to only having around $100,000 as a result of the FTX collapse. This in turn has shocked and confused many in the community on how the former CEO was able to pay for his $250M bail.
According to the court filing, Bankman-Fried $250,000,000 “personal recognizance bond,” which would mean that he would not personally have to have upfront payment.
Instead, the bond condition sees that Bankman-Fried’s parent’s five-bedroom home in Palo Alto, which was 10% of the bail amount, will be used as collateral. Other requirements from this bond also include house arrest along with restrictions on spending, business activities, and firearms.
If SBF fails to show up in court or follow through with these bond conditions, he will then be required to pay the full $250 million bail.
Sam is out on a personal recognizance bail. What this means is that NO MONEY has been paid. His parents put up their home as collateral, one relative and a non-relative have also put up collateral. All of them would be on the hook for $250M if Sam runs. https://t.co/F85qHFVQDQ
— Autism Capital 🧩 (@AutismCapital) December 22, 2022