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- BBC News World
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Sam Bankman-Fried was placed on $250 million bail.
The founder of the FTX cryptocurrency market, Sam Bankman-Fried, has been released on bail and will remain under house arrest while he awaits trial in the US for the alleged million-dollar scam he committed through his company, which filed for bankruptcy a few weeks ago.
A US judge has ruled that the 30-year-old former billionaire can remain under house arrest with his parents, who put up their California home as collateral for the bail of US$250 million dollars established by the magistrate.
At the hearing Bankman-Fried neither admitted nor denied his guilt.
Shortly before his arrest in the Bahamas on December 12, the entrepreneur told the BBC: “I did not knowingly commit fraud. I don’t think I would commit fraud. I didn’t want any of this to happen. I certainly wasn’t as competent as I thought I was.” “.
Two of Bankman-Fried’s closest associates pleaded guilty to fraud Wednesday and are helping with the investigation.
image source, Archyde.com
Sam Bankman-Fried was arrested in the Bahamas.
multiple charges
Federal prosecutors in New York accused Bankman-Fried of illegally using FTX client deposits to fund his other cryptocurrency firm, Alameda Research, purchase property and to spend Millions of dollars in political donations.
At a press conference last week, they described what happened with FTX as “one of the largest financial frauds in United States history” and announced eight criminal charges including wire fraud, money laundering and campaign finance violations. Financial regulators have also filed civil charges.
Bankman-Fried spent nine days in jail in the Bahamas weighing his options before deciding he would not appeal his extradition to the US, potentially leading to a lengthy legal battle.
At Thursday’s court hearing in New York, Assistant US Attorney Nick Roos said he would not oppose Bankman-Fried’s release on bail despite “fraud of epic proportions,” signaling his decision to voluntarily return to the US.
Bankman-Fried must surrender his passport and submit to a location check and detention at his parents’ home in California. She also agreed to regular mental health treatment. Her parents will co-sign the $250 million bond, Bankman-Fried’s attorney, Mark Cohen, said.
The “king” fallen from grace
image source, Getty Images
FTX filed for bankruptcy in November, leaving thousands his clients without the possibility of withdrawing their investments.
In his prime, Bankman-Fried was seen as a younger version of legendary American investor Warren Buffet.
Until the end of October I had an estimated net worth of more than $15 billion.
Bankman-Fried resigned as CEO of FTX on November 11.
According to court documents filed earlier this month, FTX currently owes its 50 largest creditors almost $3.1 billion.
