The founder of the collapsed crypto exchange FTX was released on the largest bail in history

A court in New York has decided to release Sam Bankman-Fried, the founder and ex-CEO of the collapsed FTX crypto exchange, from custody on a record $250 million bail. About it
reported CNBC.

Sam Bankman-Fried, founder of collapsed FTX crypto exchange, released from custody on the largest bail in history

Photo: Lam Yik/Bloomberg

Until his trial on eight charges related to fraud with the funds of the collapsed crypto exchange, he will live in his parents’ house under strict supervision and wear an electronic bracelet to control his movements.

Prosecutors called the $250 million deposited “the largest pre-trial bail in history.” Prior to this, the largest bail amount was $10 million for Bernie Madoff, who was awaiting trial in a pyramid scheme.

Bankman-Fried was also banned from opening any new lines of credit for more than $1,000 before the trial.

Bankman-Fried is accused of defrauding investors, using client funds to buy real estate, illegally funding political donations, and supporting deals through hedge fund Alameda Research.

To him
threatens a prison term of 115 years.

Crypto exchange FTX, which at the beginning of 2022 was estimated at $32 billion,
crashed in early November, after the release of the CoinDesk investigation, which indicated the insolvency of the exchange. Investors rushed to withdraw money en masse. Two weeks after FTX filed for bankruptcy, investors
brought out almost $20 billion from crypto funds. US authorities claim that more than $8 billion has disappeared from client funds.

Sam Bankman-Fried stepped down as head of the exchange on November 11. He was extradited from the Bahamas to New York on 21 December. According to the former crypto billionaire, he has only $100,000 left.

The new head of the FTX crypto exchange John Ray is the main reason for its bankruptcy
named ineffective management and inexperienced leaders.

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