Sam Bankman-Fried, the founder of collapsed cryptocurrency exchange FTX, has managed to stay of jail thanks to hefty contributions from two anonymous sponsors, according to a court filing.
Bankman-Fried, who is facing convictions on a generous buffet of fraud charges, is currently awaiting trial in a Manhattan federal court, residing under house arrest at his parents' California home. One of the two unnamed sponsors posted $500,000, with the other posting $200,000 towards guaranteeing the alleged fraudster's $250 million bond, settled in December, 2022. Besides these two bail backers, the bond was also secured by Bankman-Fried's parents, who offered their Palo Alto home, estimated to be worth $4 million, as collateral.
Details about the contributors were disclosed by Christian Everdell, one of Bankman-Fried's defense attorneys, to be subsequently included in the bail condition documents by US District Judge Lewis Kaplan.
Earlier in January, some media outlets urged the judge overseeing the case to unseal the names of the two backers, arguing that there was "no dispute" it would be in the public interest. However, Bankman-Fried's lawyers have insisted on secrecy to guarantee their "privacy and safety." The legal team pointed to how Bankman Fried's parents were allegedly exposed to threats and harassment for their financial role in bailing their son out.
Sam Bankman-Fried has been accused of orchestrating "a years-long fraud" to divert funds from his FTX cryptocurrency exchange to pay debts at his other company, Alameda Research. The latter is a crypto hedge fund that he was also in control of. According to court filings, prosecutors estimate Bankman-Fried defrauded more than one million customers.
The crypto businessman was arrested in the Bahamas, where he fled after stepping down on December 12 as CEO of the company. He was then extradited at the request of US authorities, and released last month on a $250 million bond, with his criminal trial set to begin on October 2. If convicted, Bankman-Fried faces a prison sentence of up to 115 years. The founder of the collapsed crypto empire himself has pleaded not guilty to the charges against him.