FTX founder Sam Bankman-Fried receives bail approval for $250 million
- Former FTX CEO is being investigated for fraud and illicit use of customer funds following extradition from the Bahamas.
- The bail conditions limit Sam Bankman-Fried to conduct transactions worth less than $1,000 at all times.
- Earlier this week, FTX and Alameda Research executives pleaded guilty to multiple charges.
The FTX saga continues to leave the world surprised, with the federal court approving bail for ex-CEO Sam Bankman-Fried. Despite having a barrage of charges to his name and being labeled as a “flight risk” by the Bahamian authorities, the United States court has given him conditional bail.
FTX head Sam Bankman-Fried could get bail
FTX collapse has been pinned on Bankman-Fried since its revelation and continues to do so. The former head has been stated as the mastermind of the entire Alameda Research debacle. Consequently, he has been charged with fraud as well as unlawful usage of customer funds which, upon discovery, triggered the market crash.
Regardless, the federal court approved bail for the disgraced CEO but with certain conditions. Firstly, Bankman Fried cannot make any transactions worth more than $1000 as well as open new lines of credit. Secondly, he is also restricted from leaving the house except for exercise and treatments.
However, the bail amount has been set at $250 million, which could be submitted by Bankman Fried’s parents in order to pull him out of the hail. A bail amount this high sounds crazy and also impossible. But in comparison to the $10 billion FTX owes to its customers, this amount is relatively low.
Former FTX and Alameda executives surrendered
As reported by FXstreet, the once heads of the companies, co-founder Gary Wang and Alameda Research former CEO Caroline Ellison, pleaded guilty and accepted the charges against them. The FTX and Alameda executives are cooperating as well.
Charged by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the FTX and Alameda Research heads are facing the music for fraud as well as manipulation of the native token FTT price.
Going forward, US attorney Damian Williams noted that more announcements will follow and that the investigations are still underway.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
