For the backstory, go here.
Sam Bankman-Fried was released on a $250 million bail after a hearing on Thursday in New York federal court, where he is facing serious criminal charges over the collapse of his crypto exchange FTX.
$250 million bail!?
Who paid for this bail? First, this can’t have been cash bail, or they would have needed to fly in a Globetrotter. But even if they’re allowed to use assets, there is a short list of people who have $250 million in assets.
In granting what a federal prosecutor in the case called the “largest-ever” pretrial bond, Judge Gabriel Gorenstein required Bankman-Fried to hand over his passport and agree to be monitored and generally confined to his parents’ Palo Alto home.
Such large bail amounts don’t necessarily have to be paid out — but they need to be secured in some way, to provide assurance that a defendant won’t violate its terms. In this case, Bankman-Fried’s parents’ home in Palo Alto offers such a security, along with types of collateral posted by others who weren’t named in the filing.
Bankman-Fried previously said in media interviews last month that he had seen just about $100,000 in his account at the time.
It’s literally shadowy and unnamed financiers with metrick fuckloads of money who are friends with this guy and bailed him out of jail. For some crazy reason they are allowed to go unnamed.
The value of the home in question doesn’t necessarily need to correlate to the value of the bail amount — its function is to provide assurance that a defendant will comply with the conditions of their release.
“These amounts are often just numbers — sometimes defendants will sign bonds in the amount of hundreds of thousands of dollars when everyone knows they don’t have a penny to their name,” said Andrey Spektor, a white collar partner at Bryan Cave Leighton Paisner LLP, and a former federal prosecutor in Brooklyn.
In this case I don’t have enough information to call BS on this. For all I know this is true, although it begs the question of what the point of the bail number is in the first place. If the judge says “you need to give me $250 million in bail,” and you sign over your property worth $40 million, then what is the purpose of demanding $250 million in the first place?
But then again, that could be bullshit, and he could have had his (((unnamed rich pals))) give some $200 million to the New York federal court to let him out of jail. I don’t have enough information to say one way or another. I just want these people’s names and the total amount they put up for bail.