New York Southern District Court Judge Gabriel Gorenstein announced the verdict after an agreement was reached between defense attorneys and federal prosecutors. In line with the decision, Bankman-Fried, who is awaiting trial for 8 crimes including fraud and money laundering, will be released on $250 million bail until the hearing.
In addition, Bankman-Fried will be kept under strict surveillance at his family’s home in California, which has been put up as equity to cover some of the bail amount.
In this process, his mental health will be checked regularly, and Bankman-Fried’s passport will be confiscated.
Bankman-Fried was detained in the Bahamas last week after the US filed a criminal complaint.
Federal prosecutors in the US had filed indictments against Bankman-Fried, who was detained, on various charges, including “fraud”, “violating financial laws” and “money laundering”. The US Securities and Exchange Commission (SEC) also accused Bankman-Fried of defrauding investors.
Bankman-Fried was extradited to the United States from the Bahamas yesterday.
Caroline Ellison and Gary Wang, senior executives of FTX, were found guilty of various fraud-related crimes and sought to cooperate with the federal government.
Cryptocurrency exchange FTX started to experience liquidity problems after problems with its rival and the world’s largest crypto exchange Binance. FTX filed for bankruptcy in the US in November, and the company’s CEO, Sam Bankman-Fried, resigned. (AA)