The founder of the ill-fated cryptocurrency platform FTX, Sam Bankman-Fried (SBF)will be confined to his parents’ home in Palo Alto (California, USA) until the start of the trial in NY where he is accused of fraud, in exchange for the payment of 250 million dollars.
This was agreed this Thursday by the judge presiding over the case against the Young businessman who today appeared for the first time before the United States Justice after having been extradited from Bahamaswhere he resided, local media reported.
During his house arrest, SBF It will carry a location system to control its location.
In addition, his passport will be withdrawn and he will receive both psychological and drug abuse treatment, he reported. The New York Times.
During the time that his confinement lasts, the defendant may not spend more than $1,000 without the approval of the Prosecutor’s Office.
The former top executive had already started in Bahamas the negotiations with the United States Government to surrender to Justice and accept extradition in exchange for not entering prison, as various media outlets advanced.
The founder of FTX came to NY on Wednesday night to be tried on the multiple charges attributed to him by the US authorities after the bankruptcy of his company, which came to be valued at 32,000 million dollars.
Bankman-Fried had stated in the Bahamas that he was accepting his extradition in part because of his “desire to compensate clients affected” by the bankruptcy of FTXwhich filed for bankruptcy on November 11 after a rapid collapse after many users rushed to withdraw their funds amid reports casting doubt on the company’s solvency.
Among the crimes charged against him are wire fraud, money laundering and violation of political campaign finance laws.
SBF partners pleaded guilty
The return of the creator FTX It came just as two of his associates have pleaded guilty to wire fraud, among other crimes, Manhattan US Attorney Damian Williams announced Wednesday.
The former CEO of Alameda Research, a company founded by Banker-Fried who was the investment arm of FTXCarolyn Ellison, and co-founder of FTX Gary Wang pleaded guilty to charges “in connection with his role in the fraud that contributed to the collapse” of the company, Williams said in a video.
Williams added that the two are collaborating on his investigation into “the big fraud project” the crypto guru was alleged to have spearheaded and contributed to the company’s spectacular crash, which has wreaked havoc on the cryptocurrency world.
EFE