The crypto community has raised many questions about how the former CEO of FTX was able to secure bail and the conditions that came with it.
Crypto Twitter took issue with Sam Bankman-Fried’s $250 million bail bond, saying he could spend Christmas at his parents’ Palo Alto home without paying a penny upfront
The former FTX CEO arrived in New York City from the Bahamas and appeared in court Dec. 22, where he was released on bail through a “personal recognizance bond” — basically a defendant’s written promise to show future court appearances and not do anything illegal while out on bail in May.
According to the release agreement filed Dec. 22, no cash was required to be deposited in court, but bond conditions ensure that Bankman-Fried’s parents’ five-bedroom home in Palo Alto is a form of $250 million surety bond to be used.
Some in the crypto community on Twitter were initially baffled by the $250 million no-upfront-cost collateral requirement, questioning how Sam Bankman-Fried claimed for the first time to post collateral figures for less than $100,000 collateral in his bank account at the figure $250 million .
Under the bail agreement, the bond is paid only if Bankman-Fried fails to appear in court in the future or violates other conditions of bail, such as the need to surrender to serve a court sentence
Now those who have reviewed court documents have instead shared concerns about Bankman-Fried’s guarantors — her father Alan Joseph Bankman and mother Barbara Fried — if SBF violates her bail conditions, They’ll be on the hook
Scott Melker, host of the Wolf of All Streets podcast, tweeted on Dec. 23 that while SBF doesn’t have to pay $250 million to stay out of jail, if he “skips bail,” his parents will work “ 17 extra” jobs to be done job ” to make money.
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Outspoken crypto-Twitter user Autiz Capital elaborated on the case and explained that although Bankman didn’t have to pay Fried any money up front, she put her parents, relatives and non-relatives in a difficult position.
When Jason Brett, host of the Regulatory Jason Podcast, tweeted on Dec. 23 that while it may not be fair that SBF lives in a luxury home during the trial, he reminds his followers that there is a… fair trial and presumption of innocence for all people in America .
Steven McClurg tweeted a statement saying the SBF parents should not be allowed to hold their home as collateral for the $250 million bail because it was “stolen from the FTX fund” it was purchased.
Related: SBF moved in to cover her parents’ astronomical bail bonds
Some Twitter users also found it amusing that the SBF’s bail conditions did not prohibit them from using a computer while released on bail.