Disgraced crypto mogul Sam Bankman-Fried today was let out of jail by a New York judge under a $250 million bond agreement. A common question—especially on crypto Twitter—is, where did all that money come from? Didn’t SBF lose billions of dollars? Is he tapping into FTX funds?
Well, the short answer is this: no one has paid anything, nor is any cash owed—not yet, anyway. Bankman-Fried’s release agreement is an “appearance bond,” a promise to comply with specific restrictions while awaiting trial, and to show up when the time comes.
The appearance bond as filed with the court establishes a $250,000,000 personal recognizance bond guaranteed by four people, at least one not a member of Bankman-Fried’s family. For now, though, the only two signatures are those of Allan Joseph Bankman and Barbara Fried, the former mogul’s father and mother.
If Bankman-Fried doesn’t remain in compliance, or doesn’t show up for his trial, then the $250,000 will be called due. And the first item of collateral offered to liquidate to cover that amount is his parents’ home in Palo Alto.
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