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HomeCrypto NewsMarketWhy Did SBF Not Have To Make A Payment To Secure Release? Can He Flee The US?

Why Did SBF Not Have To Make A Payment To Secure Release? Can He Flee The US?

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A US judge granted SBF bail on Thursday after prosecutors and SBF’s attorneys agreed on the terms. However, the details have left crypto community members with unanswered questions.

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Yesterday, FTX founder Sam Bankman-Fried was released on personal recognizance with a bail bond set at $250 million, per reports from CNBC.

The crypto founder’s parents pledged their Palo Alto home valued at $4 million to secure his release. Per the details, two other anonymous signees have also pledged “considerable assets” to account for the $246 million bond balance.

Consequently, SBF made no payment to secure his release, only a promise that these individuals would be forced to give up the assets mentioned above should the crypto founder break the terms of the bond.

In a CoinDesk opinion piece shared by pro-XRP attorney John Deaton, James Murphy, the founder of Murphy & McGonigle, expresses outrage at this fact. Notably, Murphy’s article fails to include the two other anonymous signees.

“Bankman-Fried walked out of court essentially a free man by signing a piece of paper where he promised to pay the court $250 million if he decides to flee to another country with no extradition,” Murphy writes. “This, of course, is totally absurd.”

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As Value Technology founder Jason Brett explained, SBF could not post bail because the Us government does not let defendants in financial crime and drug cases post bail, as they may make payment from fraudulently acquired sources.

Furthermore, as Alex Thorn, Head of Research at Galaxy, highlights, escape for the crypto founder may be more challenging than Murphy lets on. Thorn, sharing excerpts from the transcript of SBF’s hearing on Thursday, highlighted that the court granted bail based on his “notoriety.” Consequently, the court believes that the FTX founder will find it challenging to engage in financial crime or attempt to flee the country without being recognized.

Aside from this, SBF has been shackled with an ankle monitor and will remain under strict supervision from Pretrial services.

Several crypto community members are understandably curious about the identities of the anonymous signees. Notably, at least one is a non-family member. The public will likely get more information on this on January 5, when both parties must sign, as Thorn explains. Brett believes these persons will likely remain anonymous or have their identities leaked.

Recall that SBF requested immediate extradition to the US to seek bail after failed attempts in the Bahamas, per reports from Bloomberg.

The FTX founder faces over 100 years in prison for multiple counts of fraud from the US Department of Justice. The SEC and CFTC have also filed separate civil charges against the crypto founder.

FTX and its subsidiaries filed for bankruptcy in November after a bank run revealed an $8 billion hole in its balance sheet.

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Author

Mark Brennan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

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