The former CEO of FTX’s ability to post bail and agree to terms attached is drawing criticism from the wider crypto community. Sam Bankman-Fried’s $250 million bail bond, which allowed him to spend Christmas at his parents’ Palo Alto home without paying anything upfront, seems to have offended many who thought he would end up in prison sooner than later.
The bail terms
The former FTX CEO arrived in New York on December 21 after traveling from the Bahamas amid a postponed extradition, and on December 22, he made his court appearance. He was granted bail through a “personal recognizance bond,” a written promise from the defendant that they would appear for future court dates and refrain from engaging in any illegal activity while out on bail.
No cash was required to be posted, according to the release agreement filed on Dec 22, but the bail terms provide that Sam Bankman-Fried’s five-bedroom Palo Alto home would be used as collateral for the $250 million bond.
In reaction to this, On December 23, Wall of All Streets Podcast host Scott Melker also tweeted that while the disgraced FTX boss didn’t have to pay $250 million to avoid going to jail if he “skips bail,” his parents will need to work “17 more jobs” to get the money.
Several members of the cryptocurrency community on Twitter were initially perplexed by the $250 million “no-upfront-cost” bail requirements and questioned how Sam Bankman-Fried could post the $250 million bail. Earlier, the ex-FTX boss declared that he had less than $100,000 in his bank account.
According to the bail deal, the bond is only paid if Sam Bankman-Fried breaks other bail conditions, such as failing to attend court proceedings, surrendering to serve a sentence, or appearing for subsequent court appearances.
Instead, others who read the court filings expressed alarm about Sam Bankman-Fried’s guarantors, notably his mother, Barbara Fried, and father, Allan Joseph Bankman, who would be held responsible should he fail to abide by the terms of his release.
According to Twitter user Autism Capital, who commented on the subject, Sam Bankman-Fried has placed his parents, relatives, and non-relatives in a challenging predicament.
While it may not be fair that he resides in a lavish mansion while on trial, Regulatory Jason Podcast host Jason Brett reminded his listeners that every person in the US is entitled to an equal trial and the innocence presumption.
In a tweet, Steven McClurg implied that Sam Bankman-Fried’s parents shouldn’t be permitted to use their house as security for the $250 million bail since it was purchased with “stolen FTX monies.”
According to David Schwartz, who accused investor groups of fanning FTX scams, the fact that Sam Bankman-Fried’s bail restrictions did not prohibit him from accessing a computer while out on bond made several Twitter users laugh.