FTX
Bankman-Fried
Freed on $250
Million Bail
to Palo Alto
Home of
Parents
By Matthew
Russell Lee, Patreon Maxwell
book
SDNY COURTHOUSE,
Dec 22, 2022 –
Sam
Bankman-Fried
of FTX was
indicted in
the U.S.
District Court
for the
Southern
District of
New York,
leading to his
arrest in the
Bahamas on
December 12, and
extradition to
the US on
December 21.
Late on December
21, the US
Attorney's
Office issued
a video
announcing
that SBF was
"in FBI
custody and
will be
transported
directly to
the Southern
District of
New York."
The US
Attorney's
Office also
released the
plea
agreements (signed
December 19) of Caroline
Ellison of Alameda
(on Inner City
Press'
DocumentCloud here)
and of Gary
Wang - on
Patreon here.
On
December 22
when
Bankman-Fried
was presented
and released
on $250
million bond,
Inner City
Press live
tweeted,
thread here:
All
rise!
US has
a "location
monitoring
specialist" at
their table.
Assistant
US Attorney
Nick Roos:
Defendant
consented to
extradition
and was
transported by
the FBI. He
arrested in
the US in this
district last
night, in
Westchester.
Bankman-Fried
is at defense
table with two
lawyers.
Magistrate
Judge Gabriel
W. Gorenstein:
I understand
you have
retained
counsel. Count
1 is that you
conspired to
commit the
crime of wire
fraud, by
agreeing to
defraud
customers of
FTX.com
Judge
Gorenstein:
You are also
charged with
commodities
fraud, by
purporting to
trade swaps...
You are
charged with
securities
fraud, with
false
information
about
http://FTX.com
's financial
condition.
Also,
conspiracy to
commit money
laundering...
Judge
Gorenstein:
You are also
charged with
violating
campaign
finance laws.
Have you seen
this
indictment?
Defense
counsel: Yes,
and we waive
the public
reading. Judge
Gorenstein:
The indictment
will be at a
later date.
Assistant
US Attorney
Nick Roos: For
bail, you must
consider the
weight of the
evidence. This
was a fraud of
epic
proportions.
If that was
the only test,
detention
would likely
be
appropriate.
But he
voluntarily
consented to
extradition.
That should be
given weight
AUSA
Roos: If he
had resisted,
we would have
opposed
release. But
his assets
have
diminished.
This is a
financial
crime and he
no longer
works for FTX
or Alameda. So
risk to the
community is a
marginal
consideration.
We propose a
restrictive
bail package
AUSA:
We believe
this is the
highest ever
pre-trial
bond. That's
our proposal.
Judge
Gorenstein: Go
ahead. AUSA
Roos: A $250
million bond,
signed by
defendant and
his parents,
and a non
family member,
secured by the
parents' home,
where he will
live, in Palo
Alto
AUSA
Roos: He could
live the home
for purposes
of exercise...
Mental health
and substance
abuse
treatment. No
financial
transactions
in excess of
$1000 without
preapproval by
the
government,
except to pay
legal fees. He
would be
released today
AUSA
Roos: He would
be required to
turn himself
in to Pre
Trial Services
in the ND of
California
tomorrow by 10
am. I believe
the defense
has consented
to this. Judge
Gorenstein:
Pre-trial
services?
Pre-trial: We
could install
GPS today.
Defense
counsel: I'd
like to
emphasize, my
client
voluntarily
consented to
come face
these charges
in NY.
Extradition
can take
months or
years in the
Bahamas.
[Bankman-Fried
is sitting
with his arms
cross in front
of him,
wearing a suit
with 2
Marshals
behind him
Defense
counsel: His
parents are
Stanford
professors. We
ask that you
accept
release. Judge
Gorenstein:
Under the Bail
Reform Act, at
this point we
have an
indictment, a
grand jury has
found probable
cause.
Judge
Gorenstein:
This
individual has
no prior
criminal
history of any
time, and
strong ties to
this country;
his family
lives here.
There's no
record of
violence. He
is a citizen.
This is a
first arrest
Judge
Gorenstein:
The defendant
has achieved
sufficient
notoriety it
would be
impossible for
him to
continue
financial
transactions -
this notoriety
also goes to
risk of
flight. He
would be
recognized. So
I am going to
permit
release...
Judge
Gorenstein: He
will surrender
his passport -
it has already
been
surrendered.
Home detention
with local
monitoring, to
be installed
today. He must
live in his
parents' home
in Palo Alto.
No new
business
without
pre-approval
of Pre Trial
Services
Judge
Gorenstein:
The non parent
signatures by
January 5, the
security
interest in
the home by
January 12.
Anything else?
Mr. Cohen?
Cohen: My
client has a
private
therapist that
he says, I
think
Pre-Trial will
be OK with it.
Cohen:
For the next
conference
before
District Judge
Abrams on
January 3, my
client will
want to attend
virtually.
Judge
Gorenstein:
Ask Judge
Abrams. I
agree to an
exclusion of
Speedy Trial
Act time until
January 3.
Judge
Gorenstein:
Mr.
Bankman-Fried,
if you violate
the
conditions, a
warrant will
be issued for
your arrest.
Do you
understand?
Bankman-Fried:
Yes I do.
Judge
Gorenstein: We
are adjourned.
Here is
the
indictment, on
Inner City
Press'
DocumentCloud
here.
The
US Attorney's
Office is said
to be On
December 21,
the SDNY US
Attorney's Office
won the
continued
detention of a
woman from
Columbia
seeking asylum
following the
murder of her
husband
(and, selling
fentanyl)
- Inner City
Press
exclusive here.
The case us US
v. Bankman-Fried, et
al., 22-cr-673
(Abrams).
***
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