FTX founder Sam Bankman-Fried to be released on $250m bail

He has been ordered to live with parents in California while awaiting trial

FTX co-founder Sam Bankman-Fried is walked to his flight from the Bahamas to the US on Wednesday. Reuters
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FTX co-founder Sam Bankman-Fried will be released from custody after paying a $250 million bond, a US judge ruled on Thursday.

Mr Bankman-Fried will live under house arrest with his parents in Palo Alto, California, while he awaits trial on eight criminal charges after the collapse of FTX.

Assistant US Attorney Nicolas Roos said the fact that he agreed to waive his right to challenge his extradition from the Bahamas was a reason for allowing him to post bail.

Mr Bankman-Fried will also be required to wear an electronic monitoring bracelet.

Magistrate Gabriel Gorenstein agreed to the bond and approved the house arrest.

Mr Bankman-Fried was flown to the US on Wednesday evening from the Bahamas, where he was arrested last week.

Meanwhile, two of his top associates pleaded guilty to criminal charges related to the FTX case and are co-operating with US prosecutors.

Caroline Ellison and Gary Wang were charged in connection with their roles in the fraud that contributed to the collapse of FTX, said US attorney Damian Williams.

The Securities and Exchange Commission announced separate lawsuits against the two associates.

Mr Williams warned others involved in FTX to co-operate with authorities.

“If you participated in misconduct at FTX or Alameda, now is the time to get ahead of it,” he said.

“We are moving quickly, and our patience is not eternal.”

Mr Bankman-Fried is charged with eight counts of financial crimes and accused of defrauding investors of $1.8 billion.

Agencies contributed to this report

Updated: December 23, 2022, 5:18 AM