NewsletterWho Paid $250 M For SBF’s Bail? Is He Still Using Client Funds?
SBF Bail News: After the release of Sam Bankman-Fried on Thursday on a $250 million bail bond, the crypto community is wondering about the turn of events. The collapse of FTX, Alameda Research and the subsidiary companies led to the crypto exchange falling from a valuation of $32 billion to $1 billion within days. The negative effects of FTX related contagion and the liquidity crisis is still playing out in the market. In this context, retail traders are awaiting some clarity around the return of funds in the ongoing bankruptcy process.
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Meanwhile, the crypto community is wondering whether SBF continues to have access to the FTX user funds. The speculation around user funds was sparked after the news of $250 million bail bond coming to the rescue of the former FTX CEO. However, a New York released SBF based on a personal recognizance bond backed by some collateral from his parents.
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Explained: What Was SBF Bail Based On
The defendant’s agreement involved a secured bond of $250 million backed by SBF’s parents’ home in Palo Alto, California. Allan Bankman and Barbara Fried were named as surety owners in the security bond. This means SBF parents would have to forfeit the ownership of their Palo Alto home if the agreement is broken. The bond will be deemed as forfeited in case SBF:
– fails to appear for court proceedings
– fails to comply with various conditions OR
– is convicted of crime
Meanwhile, Steven McClurg, co-founder of Valkyrie Funds, wondered how SBF parents were allowed to put their home as collateral.
So @SBF_FTX parents, who bought a home in Bahamas with stolen FTX funds, will use their other home as collateral on the $250mm bail?
— Steven McClurg (@stevenmcclurg) December 22, 2022
The court document clearly stated that,
“The court may immediately order the amount of the bond surrendered to the United States, including the security of the bond, if the defendant does not comply with the agreement.”
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