Is It All Over? Sam Bankman-Fried in FBI Custody, Biggest Name Yet Turns on Him
The disgraced former executive of cryptocurrency exchange FTX has been arraigned in an American courtroom after his extradition from the Bahamas.
Sam Bankman-Fried secured his release on a whopping $250 million bond during a Thursday appearance in Manhattan’s U.S District Court, according to CNBC.
The alleged fraudster was extradited from the Bahamas on Wednesday.
The parents of the 30-year-old ex-billionaire provided surety for his bond, according to the New York Times.
Bankman-Fried’s first U.S. court appearance comes as a key player in his defunct businesses has begun cooperating with federal authorities in the ongoing investigation into FTX.
Federal prosecutor Damian Williams indicated in a Wednesday news conference that former Alameda Research CEO Caroline Ellison has begun cooperating, as has company executive Gary Wang.
The former partners of Bankman-Fried have already pleaded guilty to fraud charges involving FTX, according to the New York Post.
Statement of U.S. Attorney Damian Williams on U.S. v. Samuel Bankman-Fried, Caroline Ellison, and Gary Wang pic.twitter.com/u1y4cs3Koz
— US Attorney SDNY (@SDNYnews) December 22, 2022
“Both Ms. Ellison and Mr. Wang have plead guilty to those charges, and they are both cooperating with the Southern District of New York,” Williams indicated.
In civil court documents filed by Securities and Exchange Commission against Ellison, the government cites firsthand accounts from Ellison claiming that Bankman-Fried instructed her to misappopriate FTX funds.
WARNING: The following social media posts contain language some viewers may find offensive.
3. May 2022: Shit Hits the Fan
Despite already having “borrowed” billions and billions of FTX customer assets, by May, when crypto went bump in the night, Alameda (Sam) couldn’t fulfill its borrower obligations.
Sam ordered Caroline to take even more FTX customer money. pic.twitter.com/i2BKKUIJJu
— Compound248 (@compound248) December 22, 2022
Ellison is Bankman-Fried’s ex-girlfriend, according to the New York Post.
Bankman-Fried will be subject to terms of home detention under his bail arrangement — to be served at his parents’ home in Palo Alto, California.
Judge Gorenstein: He will surrender his passport – it has already been surrendered. Home detention with local monitoring, to be installed today. He must live in his parents’ home in Palo Alto. No new business without pre-approval of Pre Trial Services
— Inner City Press (@innercitypress) December 22, 2022
The collapse of FTX has been described as one of the largest financial frauds in world history.
Caroline Ellison is pleading guilty to criminal charges
She will cooperate with the government in the case against Sam Bankman-Fried pic.twitter.com/QZq0l4e6mG
— Genevieve Roch-Decter, CFA (@GRDecter) December 22, 2022
Users who considered the exchange a tenable cryptocurrency “bank” stand to lose billions of dollars, barring the recovery of funds, according to Reuters.
Bankman-Fried’s next federal court date is scheduled for January.
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