Former FTX CEO Sam Bankman-Fried will be detained at home while awaiting trial in the United States on allegations of defrauding clients and investors of the defunct cryptocurrency exchange.
A judge in the United States ruled that the 30-year-old former billionaire might be released to his parents on a $250 million (£207 million) bond.
Mr. Bankman-Fried did neither accept nor deny wrongdoing during the hearing.
Previously, he has distanced himself from the accusations that have rattled the whole cryptocurrency business.
“I did not intentionally engage in fraud. I do not believe I have committed fraud. I did not wish for any of this to occur. I was by no means nearly as skilled as I believed I was “He told shortly before his arrest on December 12 in the Bahamas, where he resided and where FTX was headquartered.
On Wednesday, two of Mr. Bankman-closest Fried’s colleagues pled guilty to fraud and are assisting with the inquiry.
New York federal authorities accuse Mr. Bankman-Fried of illegally utilizing consumer deposits at FTX to support his other crypto firm, Alameda Research, purchase real estate, and make millions of dollars in political contributions.
At a news conference last week, they referred to it as “one of the largest financial frauds in United States history” and announced eight criminal accusations, including wire fraud, money laundering, and campaign finance offenses. Civil charges have also been brought by financial regulators.
Mr. Bankman-Fried spent nine days in prison in the Bahamas pondering his options before informing the Nassau magistrates’ court on Wednesday that he would not contest extradition, which may have resulted in a protracted legal battle.
Despite a “fraud of epic proportions,” Assistant US Attorney Nick Roos stated at a court hearing in New York on Thursday that prosecutors would not oppose Mr. Bankman-release Fried’s on bail, citing his decision to return to the United States voluntarily and his significantly diminished financial standing.
Mr. Bankman-Fried must forfeit his passport and submit to location monitoring and house arrest at his parent’s residence in California as a condition of his release. Additionally, he consented to frequent mental health care. Mr. Bankman-parents Fried will co-sign the $250 million bond, according to his attorney Mark Cohen.
Mr. Bankman-Fried, the son of two Stanford University academics, created FTX in 2019.
The curly-haired MIT graduate was known as SBF by his legion of supporters, was dubbed the “King of Crypto,” and was renowned for rescuing faltering companies and making enormous donations to charity.
The collapse of his once-worth-more-than-$30 billion (£25 billion) company has unnerved the sector as a whole, prompting bankruptcy filings at rival companies and further drops in crypto valuations.
Customers and investors hurried to withdraw their assets from the company in November, following allegations that its finances were unstable.
Mr. Bankman-Fried, who resigned as CEO on the same day, has previously denied any wrongdoing and stated that he is focused on returning consumer funds.
Mr. Bankman-Fried spoke only once at his arraignment on Thursday, when he was asked if he understood the conditions of his release and that he may be charged with an extra offense if he failed to appear in court.
“I do,” he responded.
