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The Way Bankman-Fried Of FTX Obtained A $250 Mln Bail

The Way Bankman-Fried Of FTX Obtained A $250 Mln Bail
On Thursday, FTX founder Sam Bankman-Fried agreed to a bail deal that would see him released on a $250 million bond secured against his parents' property, with movement restrictions.
Defendants are presumed to be eligible for bail unless prosecutors can demonstrate that no set of conditions could guarantee their return to court. It would have been surprising if Bankman-Fried had not been granted bail because he was accused of a white collar, or financial, crime.
The process of Bankman-Fried getting bail
Defendants obtain bail by pledging a portion of their personal assets to cover a portion of their bond.
Bond packages are asset combinations that can include cash, real estate, or anything else of value.
They are frequently co-signed by family members who would be liable if the defendant fled.
White collar defendants are more likely to be able to post bond packages, but defendants with limited assets are more likely to use a bail bondsman.
Bankman-bail Fried's was secured by his parents, Joseph Bankman and Barbara Fried, who offered up their Palo Alto, California, home as collateral.
Is the bail amount implying that Bankman-Fried or his family have $250 million?
No. The $250 million bond in Bankman-case Fried's is secured by his parents' home. Because Bankman-parents Fried's signed the bond agreement, they would be liable for $250 million if their son ran away.
"They can take everything else," said Michael Bachner, a New York criminal defense attorney. "They can go ahead and take the bank accounts, the IRA accounts, stock accounts."
The $250 million bond does not represent the family's assets, which are unknown. Bankman-Fried stated in late November that he now has "nearly nothing" left and is down to one working credit card and "possibly $100,000" in that bank account. learn more
Is this the largest white-collar bail in history?
It's definitely large. Bankman-alleged Fried's crimes and the collapse of his $32 billion crypto empire have been described by federal prosecutors in New York as one of the largest financial frauds in US history. His bond package dwarfs that of some of the most notorious cases in the country's history.
"It's the largest bond I've ever heard of in my history of doing bonds," said Ira Judelson, a prominent New York bail bondsman who specializes in high-profile defendants.
Elizabeth Holmes, the founder of blood testing startup Theranos who was convicted of defrauding investors in January, was released on a $500,000 bond after surrendering her passport following her arrest in 2018.
Bernard Madoff, the late financier whose $65 billion Ponzi scheme was the largest in history, was released on a $10 million bond in 2008 after surrendering his passport and agreeing to strict monitoring conditions and curfews.
Will Bankman-Fried be allowed to travel to foreign countries?
Defendants are frequently required to surrender their passports and wear monitoring devices.
Prosecutor Nicolas Roos told US Magistrate Judge Gabriel Gorenstein that the bail package would require Bankman-Fried to surrender his passport and remain in home confinement at his parents' home in Palo Alto. He would also have to go through regular mental health treatment and evaluations.
The time frame of Bankman-Fried’s bail period
For a while. A trial in New York is likely to take more than a year as prosecutors prepare their case and both sides argue over evidence.

Christopher J. Mitchell

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