Sam Bankman-Fried Faces Extradition Hearing

( Last Thursday, FTX co-founder Sam Bankman-Fried was released from federal custody in New York after posting a $250 million personal recognizance bond.

Bankman-Fried, who was arrested last Monday in the Bahamas, appeared in federal court just one day after his extradition from the Bahamas.

Prosecutors have accused Bankman-Fried of engaging in a scheme to defraud FTX customers by misappropriating their deposits to pay for expenses and debts and to make investments on behalf of his hedge fund Alameda Research LLC.

Bankman-Fried also defrauded Alameda lenders by providing false and misleading information about the hedge fund’s condition while attempting to disguise the money he earned from committing wire fraud, prosecutors alleged.

Prosecutors also allege that Bankman-Fried then used the stolen money to make “tens of millions of dollars in campaign contributions.”

The terms of the $250 million personal recognizance bond package, which were agreed to by federal prosecutors and Bankman-Fried’s attorneys, were described by US Attorney Nicolas Roose as “highly restrictive” and the largest pretrial bond he could recall.

Under the bail terms, Bankman-Fried must wear an electronic monitoring bracelet and submit to mental health counseling.

He will also be barred from opening any new line of credits while he awaits trial.

Bankman-Fried arrived at his parents’ home in Palo Alto, California early Friday morning where he will remain under house arrest until his trial.

Bankman-Fried was not asked to enter a plea during Thursday’s hearing.

US Magistrate Judge Gabriel Gorenstein scheduled the next court date for January 3 before US District Judge Ronny Abrams.

Meanwhile, Bankman-Fried’s two business partners reached plea agreements with the US Attorney’s Office for the Southern District of New York last Wednesday and are cooperating with prosecutors.

FTX co-founder Gary Wang pleaded guilty to four charges, including wire fraud and conspiracy counts while former Alameda CEO Carolina Ellison pleaded guilty to seven counts, including wire fraud, conspiracy to commit securities fraud, and money laundering.