Toni Dimaano Tech 12.23.2022 01:Dec AM EST

Judges Orders Home Detention For Sam Bankman-Fried Upon Posting $250 Million Bond

Sam Bankman-Fried, the co-founder of FTX, has been given permission by New York federal court Judge Gabriel Gorenstein to be released on a $250 million bond.

However, in addition to "strict" supervision, the release order required him to stay at his Californian parents' house, Gizmodo reports.

Bankman-Fried's Lawyers, Prosecutors Agrees Upon The Terms Of Ex-CEO's Release

The FTX co-founder's parents, two additional parties with "considerable" assets, and the equity in the Bankman-Fried family home were all pledged as security for the bond.

The former crypto billionaire would have to wear an electronic monitoring bracelet in addition to the $250 million bail, which the prosecution called the largest-ever pretrial bond.

However, it was stated that the bail was a "personal recognizance bond," which meant that the collateral did not have to equal the bail sum.

Bankman-Fried would also be required to undergo mental health counseling and limit his travel within and between the Southern & Eastern Districts of New York and the Northern District of California.

Additionally, he must comply with the court's or the government's approval before starting a business, opening new credit accounts, or engaging in any transactions worth more than $1,000.

After being released to his Californian parents' house, Bankman-Fried would need strict supervision according to Judge Gorenstein,writes CNBC.

Professors Joseph Bankman and Barbara Fried, the parents of Bankman-Fried, were reportedly present in the courtroom throughout the hearing.

According to documents from the Bahamas, FTX and his parents purchased real estate worth millions of dollars, including condos.

Bankman-Fried's Business Associates Have Pleaded Guilty To Charges

In relation to the cryptocurrency exchange FTX, the ex-CEO has been charged with eight counts of wire fraud, conspiracy to commit securities fraud, money laundering, and breaking campaign finance laws.

Overall, the charges carry a maximum sentence of 115 years in prison, but that number seems a bit high, especially in light of other recent major fraud convictions.

After deciding not to contest his extradition, Bankman-Fried, who was detained in the Bahamas last week, was flown to New York late on Wednesday.

In relation, a Manhattan US attorney revealed that two of Bankman-closest Fried's business partners had been charged as well and had on Monday entered a secret guilty plea.

Gary Wang, a co-founder of FTX, and Carolyn Ellison, the former CEO of Bankman-trading Fried's company Alameda Research, pleaded guilty to charges of wire fraud, securities fraud, and commodities fraud, AP News writes.

In a video statement, U.S. Attorney Damian Williams stated that both parties were cooperating with investigators and had consented to help with any prosecution.

FTX, established in 2019, grew quickly to rank among the largest digital currency exchanges in the world by riding the crypto investing phenomenon to great heights.

However, Bankman-Fried's crypto empire abruptly came to an end in early November when customers withdrew their deposits in large numbers as a result of reports casting doubt on some of its financial arrangements.