Sam Bankman-Fried, the founder of crypto exchange FTX, has appeared in federal court for the first time to face criminal charges of fraud. Bankman-Fried is accused of misappropriating billions of dollars in customer funds and is charged with wire fraud, commodities fraud, securities fraud, and campaign finance violations, each of which carries a maximum sentence of up to 20 years in prison. Bankman-Fried was released on a personal recognizance bond, which was co-signed by his parents and two other suretors and secured by his parents’ Palo Alto, California home. In order to remain out of jail, Bankman-Fried must live in his parents’ home with electronic monitoring, and is prohibited from opening new lines of credit or businesses, and from transactions over $1,000. If Bankman-Fried fails to appear in court or violates any of the conditions, a warrant will be issued for his arrest, and the bond could be forfeited. Two former business associates of Bankman-Fried have also pleaded guilty to federal charges and agreed to cooperate with prosecutors. This case is being called one of the largest fraud schemes in U.S. history.
Sam Bankman-Fried secures $250 million bond