The crypto community has raised numerous concerns about how FTX’s former CEO was able to secure bail and the terms of the bail.
Crypto Twitter appears to be upset with Sam Bankman-$250 Fried’s million bail bond, which allows him to spend Christmas in his parents’ Palo Alto home without paying a single dime.
The former FTX CEO arrived in New York from the Bahamas on December 21 and appeared in court on December 22. He was released on bail on the basis of a “personal recognizance bond,” which is essentially a written promise from the defendant that they will show up for future court appearances and not engage in any illegal activity while out on bail.
No cash was required to be deposited with the court, according to the release agreement filed on Dec. 22, but the bond conditions stipulate that Bankman-five-bedroom Fried’s parent’s home in Palo Alto will be used as collateral for the $250 million bond.
Some members of the cryptocurrency community on Twitter were initially perplexed by the $250 million no-upfront-cost bail conditions, wondering how Sam Bankman-Fried was able to post the $250 million bail figure after claiming he had less than $100,000 in his bank account.
The bond is only paid up if Sam Bankman-Fried fails to appear for future court appearances or violates other bail conditions, such as appearing for court proceedings and surrendering to serve a court sentence, according to the bail agreement.
Meanwhile, those who reviewed the court documents expressed concern about Bankman-guarantors, Fried’s including his father, Allan Joseph Bankman, and mother, Barbara Fried, who would be liable if SBF violated his bail conditions.
Scott Melker, host of the Wall of All Streets Podcast, tweeted on December 23 that while SBF did not have to pay $250 million to stay out of jail, if he “skips bail,” his parents will have to work “17 extra jobs” to make up the difference.
Autism Capital, a vocal crypto Twitter user, elaborated on the situation, explaining that while he has not had to pay any money up front, he has put his parents, relatives, and non-relatives in a difficult position.
While the host of the Regulatory Jason Podcast, Jason Brett, tweeted on December 23 that while staying in a luxurious home while on trial may not be fair, he reminded his followers that everyone in the United States is entitled to a fair trial and the presumption of innocence.
Steven McClurg tweeted a statement implying that SBF’s parents should not be permitted to use their home as collateral on the $250 million bail because it was purchased with “stolen FTX funds.”