Business Maverick: Bankman-Fried released on $250-million bond in FTX case

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The co-founder of FTX has been released on bail after making his first US court appearance to face fraud charges over the collapse of the cryptocurrency exchange.

Shackled and wearing a blue suit, an unshaven Bankman-Fried appeared on Thursday before a judge for the bail hearing in Manhattan federal court. He did not enter a plea, which will take place later before the judge presiding over his case. His next appearance is scheduled for 3 January.

FTX’s collapse reverberated across an already-embattled cryptocurrency industry, prompting calls for further regulation as well as accountability for those who led the exchange. It was a stunning downfall for Bankman-Fried, a leading industry figure who was once estimated to be worth more than $25-billion and had emerged as a major political donor.

It’s not unusual for there to be a mismatch between the size of a bond and the assets pledged to secure it, which are often around 10% of the stated figure. Bankman-Fried’s bond must be signed by his parents and two other people with “considerable” assets by 5 January. Bankman-Fried’s notoriety was on full display when dozens of reporters, camera crews and photographers surrounded him as he left the court after the hearing. At one point, court security officers yelled at the press pack to back up and let him through. He eventually made his way to a waiting black car with his lawyers and parents following.

 

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Where did he get $250mill if he is supposedly bankrupt

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