LONDON (Bywire News) - Sam Bankman-Fried, the founder of the cryptocurrency trading platform FTX, was granted a $250 million bail package on Thursday, secured against his parents' home in Palo Alto, California.
The bail package, which was agreed upon by Bankman-Fried and prosecutors, will require the tech entrepreneur to remain in home confinement at his parents' home and to surrender his passport. He will also be required to undergo regular mental health treatment and evaluation.
Bankman-Fried had been accused of a white-collar crime, and was presumed eligible for bail unless prosecutors could prove that no set of conditions could ensure he would return to court. The bail package was secured by his parents Joseph Bankman and Barbara Fried, who offered up their home as collateral.
Bankman-Fried's parents were left in shock when they found out that they were responsible for a $250 million bond if their son were to flee. Despite the huge monetary figure, it was not a reflection of the family assets, as they could not be determined.
Michael Bachner, a New York criminal defense attorney, stated that the bond could be secured by the family home, and that the family could lose everything else, including bank accounts, IRA accounts, and stock accounts.
The $250 million bond package exceeds some of the most notorious white-collar cases in history, such as the $500,000 bond package of Theranos founder Elizabeth Holmes, who was convicted of defrauding investors in January. The late financier Bernard Madoff, who ran a $65 billion Ponzi scheme, had a $10 million bond package after his 2008 arrest.
It is unclear what assets Bankman-Fried has access to, as he told reporters in November that he had “close to nothing” left. His trial is likely more than a year away as prosecutors build their case and both sides spar over evidence.
(Reporting by Jack Queen; Editing by Megan Davies and Daniel Wallis)