SBF, Who Said He Is Down To $100,000, Walks Out On $250M Bail

Sam Bankman-Fried, who previously claimed he was down to a mere $100,000, a steep fall from grace for a man who was once at the head of a $32 billion crypto empire, left the Bahamas on Wednesday as a prisoner and walked out of the U.S. court on Thursday after posting a $250 million bail bond.

Flanked by his parents and legal team, Bankman-Fried stepped out of the U.S. District Court in Manhattan at 2:19 p.m. ET on Thursday.

This was after New York federal judge Gabriel Gorenstein ruled that the crypto entrepreneur be released on a $250 million bail bond while awaiting trial for fraud and other criminal charges.

Bankman-Fried, or SBF, as he is colloquially known in the crypto space, told Axios via a phone interview last month that he had "$100,000" in his bank account and when he could not give details, he simply said, "It's complicated. Basically everything I had was just tied up in the company."

If that's the case, how did the disgraced former CEO and co-founder of the bankrupt crypto empire FTX secure a $250 million bail?

SBF's bail was secured by his parents, Barbara Fried and Joseph Bankman, who offered their home in Palo Alto, California. However, this does not necessarily mean that SBF or his family has $250 million.

In Bankman-Fried's case, the $250 million bail bond is backed by his parent's home, and because his parents signed the bond agreement, they are liable for $250 million if their son violates the agreement.

Aside from his family's home, the bond agreement was also backed by two other individuals with "considerable" assets, according to CNBC.

In addition to the $250 million bond package, which is considered one of the largest-ever pretrial bonds, the former FTX CEO is also required to wear an electronic monitoring bracelet and see a mental health counselor and undergo counseling.

He was also ordered to surrender his passport and prohibited from traveling beyond the Northern District of California and the Southern & Eastern Districts of New York.

While awaiting his trial, Bankman-Fried is also prohibited from opening any new lines of credit above $1,000.

The FTX co-founder was charged with two counts of wire fraud, six counts of conspiracy related to securities and commodities fraud, money laundering and violating the campaign finance laws.

His next hearing, which will be presided over by Judge Ronnie Abrams in New York City, is set on Jan. 3, where he will enter a plea and be arraigned.