FTX founder Sam Bankman-Fried (SBF) made his first court appearance on December 22 after being extradited back to the United States for trial and was granted $250 million bail, one of the largest pretrial bail amounts in U.S. history. However, after the collapse of the FTX empire, SBF’s net worth was almost reduced to zero, and with $100,000 left in the bank, how did he spend this sky-high bail money?
In fact, SBF doesn’t have to really come up with the money. The $250 million bail granted by the judge is actually the property of SBF’s parents in California as collateral, and the house cannot be worth as much as $250 million. .
The huge bail is just to show the seriousness of this case. If SBG bails and absconds, his parents will lose the $250 million. In addition to the house being confiscated, the court can also confiscate his parents’ bank accounts, retirement accounts and securities account, etc.
Prosecutors pointed out that SBF was granted bail because he was voluntarily extradited to the United States. Otherwise, the general extradition process may take months, or years, because the defendant has countless opportunities to appeal.
Judge Gabriel Gorenstein argued that the surveillance equipment “could guarantee” that SBF would not escape and that his fame would “make it difficult to fly”. Additionally, because what SBF committed was a financial crime, the federal magistrate said it was unlikely he would pose a physical threat to anyone, and he is now unable to transfer funds or conduct business.
The court has ordered SBF to surrender all passports, wear surveillance equipment and be placed under house arrest at his parents’ home. Under the SBF’s bail agreement, he is prohibited from making financial transactions exceeding $1,000, cannot open new lines of credit, cannot leave the home except for exercise and must undergo regular substance abuse and mental health treatment.
SBF will appear in court again on January 3 to plead the eight criminal charges charged. It is estimated that the case will take at least one year to trial.