Things have very quickly taken a turn for FTX founder Sam Bankman-Fried. He and his associates are facing significant charges that involve financial crimes, due to their scamming and defrauding of investors.
This case is going to play out well into 2023 and it remains to be seen what all Bankman-Fried ultimately has to do to pay his penance.
He will very likely have a long time to sit behind bars; some of his associates with FTX may also be serving some considerable jail time.
Previously, Bankman-Fried was on record saying he only had $100,000 to his name. Though this didn’t stop him from coughing up a cool $250 million in order to spend his time out of jail while awaiting trial, according to CNBC.
What Happens Now?
The $250 million bail was set due to the nature of financial crimes committed by Bankman-Fried. Just yesterday, Bankman-Fried paid this amount and was seen leaving court in New York with his parents, attorneys, and security officers with the court.
The FTX founder was able to post bail, due to his parents putting up their home as collateral, along with support from other unnamed individuals. As such, while Bankman-Fried is on bail and awaiting arraignment, he’s going to be living with his parents.
From his Bahamas penthouse to prison and now back at home with his parents in the US. It's been a dramatic 10 days for fallen FTX founder Sam Bankman-Fried.
Bloomberg's @belledroulers takes us through the twists and turns, and looks at what comes next https://t.co/asAJQ6q0Mr pic.twitter.com/31vrcqOA6x
— Bloomberg TV (@BloombergTV) December 23, 2022
This isn’t a free for all, however. The FTX founder has to wear an ankle monitor, along with undergoing significant travel restrictions. Mental health checkups are a must, as is a rule that bans him from opening credit lines that surpass $1,000.
Going Into 2023
On January 3, Bankman-Fried will be back in court, where his arraignment and plea will subsequently take place.
Going into the new year, Americans can also expect to learn more about how associates of FTX and their cooperation with the authorities play a role in legal ramifications for Bankman-Fried.
WATCH: Sam Bankman-Fried departs courthouse in New York amidst a surging crowd of reporters and photographers pic.twitter.com/T6tkr0HjwO
— Bloomberg TV (@BloombergTV) December 22, 2022
At this point, the writing is on the wall here. Associates of the company are doing their best to avoid getting harsh prison sentences. The idea here is their cooperation with law enforcement is ultimately going to help them cut a deal.
Additional charges could potentially be brought against Bankman-Fried as well, if his associates reveal new crimes not already known by the prosecution.
In the meantime, folks who invested in FTX are still out of funds. Next year, the public can expect to learn more about whether or not individuals defrauded by Bankman-Fried will ever get to see their money back.
Are you surprised that Sam Bankman-Fried was ultimately able to put up the necessary bail money in order to avoid sitting in jail ahead of his trial? What new developments do you think will emerge in this case next year?
You’re invited to use the comments section below as your sounding board.This article appeared in Watch Dog News and has been published here with permission.