cryptonews

Though FTX Founder Sam Bankman-Fried was unable to get bail in the Bahamas, he secured a hefty $250 million bail in New York, which was described as “the largest-ever pretrial bond.”

When he went to court last week in the Bahamas, a judge feared he could flee the country and denied him bail as he was ordered to jail at the Bahamas Department of Corrections. But when he was extradited to New York, a US judge easily granted him bail, which was surprising considering the billions of dollars lost on his platform and the alleged funneling of money from FTX to his sister company.

The former billionaire previously stated in a media interview that he only had $100,000 left in his bank account after filing bankruptcy on his $32 billion crypto exchange, FTX. So when he was released on a $250 million bond, many were surprised.

What are the terms of Sam Bankman-Fried’s bail?

• Judge Gabriel Gorenstein said Bankman-Fried would be released to his parents’ home in California with “strict” supervision.
• He was released on a ‘recognizance bail’ which means he signed a commitment to return to court on Jan 3, when he will enter his plea of ‘guilty’ or ‘not guilty’ and be arraigned.
• The ‘personal recognizance bond’ is based on Bankman-Fried’s promise with his parents’ promise to pay $250 million if he fails to show up for court.
• His parent’s home, reportedly worth $4 million, was put up as equity, with their signatures along with two other people with “considerable” assets.
• Bankman-Fried wears an electronic monitoring bracelet.
• He must submit to mental health counseling.
• The 30-year-old can only travel within and between the Northern District of California and the Southern and Eastern Districts of New York.
• He can not open any new lines of credit of more than $1,000 while awaiting trial.

Unprecedented

Bankman-Fried did not have to pay any cash, but a simple commitment made him a free man. Typically, defendants on bond are charged 10-15 percent of the bail in cash or must commit to collateral in the full amount of the bond and if he or she fails to show up to court, the pledged collateral is forfeited.

Photo credit: Epoch Times

After former FTX Founder Sam Bankman-Fried signed extradition papers to face criminal charges in the United States, he will be handed over to US Marshalls.

The Bahamas judge Shaka Serville has approved all of the legal requirements for the extradition and was satisfied that Bankman-Fried was not “forced, coerced or threatened” into making the decision.

The 30-year-old  will be handcuffed and placed on board a plane with an escort from the FBI and the United States Marshals Service which have already arrived in the Bahamas. They will then carry him to La Guardia or JFK Airport.

He will either go to the federal detention facility or a Manhattan courtroom in the Southern District of New York. If he is sent to court, there will be an initial hearing and arraignment before a judge and he will enter a plea to the 8 charges against him.

Following a tumultuous week since his arrest in the Bahamas,  he is expected to arrive in the United States on Wednesday evening and will contest allegations that he funneled billions of dollars from his fallen exchange FTX, to his trading fund company, Alameda Research.

“Yes, I do wish to waive my right to such formal extradition proceedings,” he told the court on Wednesday morning.

His defense lawyer Jerone Roberts said his client was “anxious to leave” the Bahamas and requested that the “rule of specialty” be imposed which based on the Bahamas and US extradition treaty, states that a person can only be tried on the charges for which they are extradited.

Photo credit: Reuters

Former FTX CEO Sam Bankman-Fried will be extradited to the United States following a back-and-forth in Bahamian courts.

The now disgraced crypto knight who has become known as the mastermind behind one of the biggest financial schemes had planned to fight the extradition, then apparently folded. But when he appeared in court, his lawyer and the prosecutor seemed shocked to learn about the decision. Bankman was carried back to prison but returned a short time later, agreeing to face a US court.

Bankman-Fried’s lawyer Jerone Roberts said the fallen crypto king “wishes to put the customers right and that is what has driven his decision to be voluntarily extradited to the United States.”

Bankman-Fried would have to sign an extradition paper as he prepares to be handcuffed, placed on board a plane with an escort from the US Marshals Service, carried to La Guardia or JFK Airport, and sent to the Southern District of New York courthouse.

Bankman-Fried is expected to appear in Bahamian court again on Tuesday morning to complete the extradition process.

He was arrested by Bahamian authorities last week Monday around 6 pm at the request of the US government, and spent a week in Bahamian prison after he was denied bail.

Prime Minister Philip Davis who became an acquaintance of Bankman-Fried said at the time of his arrest, “The Bahamas and the United States have shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.”

He is wanted in New York for eight criminal charges– conspiracy, fraud, money laundering and violation of the fiance law, and could be sentenced to 115 years in prison. And more could be pending. All of this comes after the implosion of his 32-billion-dollar crypto empire and revelations that he diverted customer monies to his trading company, Alameda Research.

The 30-year-old crypto darling who has permanent residency in the Bahamas was in the country since 2021 when he moved the exchange from Hong Kong, China.

His high-profile attorney Mark Cohen represents him as he attempts to beat the charges.

Photo credit: Reuters

Former FTX CEO Sam Bankman Fried, now facing a litany of criminal charges in the US, was expected to testify before US Congress on Tuesday, fielding questions from the House Financial Services Committee on the billions of dollars missing from his cryptocurrency platform. Instead, he stood in a Bahamas court under arrest and fighting extradition, as new CEO John Ray III showed up on Capitol Hill alone, revealing the spectacular underpinnings of FTX, the now troubled exchange.

The public anticipated Bankman-Fried’s appearance, whether in-person or virtually, since Chairwoman Maxine Waters posted the request to Twitter, appealing for the former billionaire to account for the missing massive cash which belonged to his customers and investors.

The arrest of Bankman-Fried was rapid and shocking. The dramatic turn of events now meant US lawmakers will no longer grill him on Capitol Hill.

Congressman William Timmons (Republican-South Carolina), also a former prosecutor, questioned the “bizarre” move by the prosecutors of the South District of New York.

“Why 36 hours before testifying…did the South District New York send an arrest warrant to facilitate the arrest to preclude his [Sam Bankman-Field] testimony?” he asked.

Ray agreed that Bankman-Fried’s testimony to Congress would have “absolutely” been helpful to understanding the case.

Bankman-Fried was arrested on Monday night in the Bahamas, by request from the US government, one day before the congressional hearing. US Prosecutor Damian Williams threw eight charges of conspiracy, fraud, money laundering, and campaign violation at the 30-year-old crypto darling.

“I believe it was a decision made by the DOJ to prevent Sam Bankman-Fried from coming here to answer questions in front of people,” Timmons asserted.

His testimony “would be great for the case,” he continued. “I just don’t understand it.”

“I look forward to figuring out why they did that.”

Bankman-Fried was the second biggest donor to the Democratic party, even giving millions to President Joe Biden when he campaigned against Donald Trump. It is reported that he hoped to influence crypto regulations.

FTX, once valued at $32 billion imploded in a matter of weeks after documents were leaked that Bankman-Fried was funneling cash to his sister company Alameda Research, and the exchange had a gap of $8 billion in losses.

Bankman-Fried quickly filed for bankruptcy on November 11 and the man who was once lauded for his billion-dollar crypto successes became the villain of the financial market with only a meager $100,000 reportedly left in his bank account.

Photo credit: Keith Gomez

FTX Founder Sam Bankman-Fried appeared before Chief Magistrate Joyann Ferguson-Pratt on Tuesday to face extradition to the USA where a laundry list of criminal charges awaits him.

The 30-year-old crypto darling appeared dressed in a blue suit and white shirt for the arraignment proceedings, arriving in a SWAT vehicle and shoved through a side door of the courtroom, unshackled.

Reporters were not able to get photos of the disgraced crypto-white knight but his parents Stanford law professors Joseph and Barbara Bankman-Fried were spotted going into the Magistrate’s Court to watch their son be arraigned.

It is possible the 30-year-old could fight the extradition since he did not waive his rights to be extradited to the US to face fraud and conspiracy charges.

“Mr. Bankman-Fried is reviewing the charges with his legal team and considering all of his legal options,” his lawyer, Mark S. Cohen said in a statement.

Bankman-Fried reportedly was permitted to take his medication as he requested and bail was being considered.

Bahamas police arrested Bankman-Fried on Tuesday on request by the US government and 8 criminal charges, among others, await him in a New York court.  The US Securities Commission has also alleged he defrauded investors out of billions of dollars and led them to believe their monies were safe.

Featured Image of Bahamas Court: Keith Gomez

FTX founder and former CEO Sam Bankman-Fried is facing extradition to the United States after his arrest in the Bahamas following mounting claims of misappropriation of billions of dollars of customer funds on his crypto platform.

The surprising news came late Tuesday evening after the Bahamas Attorney General Ryan Pinder issued a statement confirming the disgraced crypto wunderkind is under arrest in the country where FTX was headquartered before its collapse on November 11.

Prime Minister Philip Davis said, “The Bahamas and the United States have shared interest in holding accountable all individuals associated with FTX who may have betrayed the public trust and broken the law.”

It became apparent that the United States filed criminal charges against Bankman-Fried after ramping up its investigations into the alleged lost funds and reports of fraud at the crypto exchange that fell rapidly.

Criminal charges were filed in a New York courtroom and prosecutors are expected to unseal documents on Tuesday. But someone familiar with the matter told New York Times, the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud conspiracy and money laundering.

Bankman-Fried allegedly funneled customer monies from FTX once valued at $32 billion, to his sister company Alameda. Despite his downfall, Bankman-Fried continued his media tours in which he detailed FTX’s accounting errors.

It’s important to note that the Bahamas is conducting its own investigations. At the end of last month, Pinder said the Bahamas Securities Commission and the Royal Bahamas Police Force were probing the allegations of fraud by Bankman-Fried.

Davis said on Monday night, “While the United States is pursuing criminal charges against SBF individually, the Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere.”

The AG Office said it awaits a formal request for extradition from the US and will “process it promptly, pursuant of the Bahamian law and its treaty obligations with the United States.”

The arrest comes after Bankman-Fried finally agreed to testify on Tuesday before the Finance Committee on Capitol Hill about how events unfolded at the exchange.