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FTX founder Sam Bankman-Fried to be released on $250M bail

cnbc.com

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Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#151

Post by googlryas »

pavlov wrote: post #115

David Gerard has the best summary: ‘He was released on bail for a $250 million bond — “the largest ever pretrial bond,” apparently — secured only on his parents’ home in Palo Alto, where he will be living. ’SBF will surrender his passport and remain in home confinement with electronic monitoring — he’ll wear a bracelet. He will also be required to undergo regular mental health evaluation and treatment. No financial t…

Should be denied access to the internet too, like most internet related criminals are on bond conditions.

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#152

Post by dragonwriter »

cm2187 wrote: post #5

Wait. Only a few days ago he declared he had less than 100k on his bank account and now he forks out 250m? It's hard to believe anything else he said.

> Only a few days ago he declared he had less than 100k on his bank account and now he forks out 250m?

No, he (or one or more other people on his behalf) secured a $250m bond. Bail bonds generally cost significantly less than the amount of bail; in many states with a maximum or exact amount set by law. In New York, the maximum is 10% up to $3000, 8% for $3000-$10000, 6% for the amount over $10000. At $250M bail, the bond is a hair over $15M.

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#153

Post by TuringNYC »

randyrand wrote: post #133
WJW wrote: post #121

Earlier quoted context omitted.

His parents' house is worth 250 million USD? (!?!)

emphasis collateral. A loan was taken out for 250M with 4M collateral.

>> emphasis collateral. A loan was taken out for 250M with 4M collateral.

Nice. Reminds me of how some folks recently borrowed $1B with crappy illiquid collateral. Round and round we go!

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#154

Post by dinkumthinkum »

low_tech_love wrote: post #125

I wonder if this whole thing counts as “effective altruism”? Maybe he is effective at scaring other crypto “adventurers” (i.e. people who like to play with other people’s money as if they were in the wild west) and the number and size of scams diminishes in the future? That’d be a good badge to have on his boy-scout t-shirt (or whatever boy-scouts use).

I think he already said on Twitter that stuff was just a set of woke shibboleths.

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#155

Post by dragonwriter »

c22 wrote: post #15
throwaway4good wrote: post #12

Earlier quoted context omitted.

How does it work then?

This is, in fact, how bail works. But you can often get a bail bond (from a third party) for 10%-20% of the bail amount.

> But you can often get a bail bond (from a third party) for 10%-20% of the bail amount.

In most states, 10% is closer the legal maximum than the minimum premium for a bail bond (it is often exactly the the legal maximum, but in NY the maximum for large bail amounts is much lower, asymptotically approaching 6%.)

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#156

Post by TuringNYC »

kickopotomus wrote: post #99
dvngnt_ wrote: post #91

Earlier quoted context omitted.

I thought it was only if you skip town

Not quite. You pay a bondsman 10%. The bondsman turns around and pays the full bail amount to the court. If you show up, the bondsman gets their money back from the court but keeps your 10% as a fee. If you don't show up to court, the bondsman does not get their money back and is left holding the bag for the other 90% of the bail amount.

What professor has $25M lying around to pay the bond? Yes, Palo Alto homes are expensive, but those are not typically the homes professors are living in.

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#157

Post by throwthere »

Armchair thoughts-- makes you wonder what the game is here-- the prosecutors want a high enough bail that SBF can make, but not so high that he wouldn't pay the bond.

For reasons-- 1) It proves he has more funds. 99% odds he will declare bankruptcy once the civil judgements come, so this refutes SBF claims that he only has a few hundred dollars in a bank account somewhere.

2) Making him collect funds from more than one source so they can flush out some of his hidden buckets. Who knows how many wallets, cash and favors he's hiding, but the Feds and Internet investigators will be watching. Especially for movements on the blockchain.

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#158

Post by acchow »

pessimizer wrote: post #25
tibbydudeza wrote: post #13

Earlier quoted context omitted.

His parents had to put up their home for the bond.

Had to give up their home for the bond? edit: i.e., it is far more likely to be a 25M home than a 250M home, because I've never heard of a 250M home.

"The One" had an asking price of $291M. But it only sold for $141M

https://www.youtube.com/watch?v=U8Cd_McCdow

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#159

Post by annexrichmond »

pavlov wrote: post #115

David Gerard has the best summary: ‘He was released on bail for a $250 million bond — “the largest ever pretrial bond,” apparently — secured only on his parents’ home in Palo Alto, where he will be living. ’SBF will surrender his passport and remain in home confinement with electronic monitoring — he’ll wear a bracelet. He will also be required to undergo regular mental health evaluation and treatment. No financial t…

More like he moved into his parents’ attic? They don’t have basements in California :P

Re: FTX founder Sam Bankman-Fried to be released on $250M bail

#160

Post by randyrand »

tibbydudeza wrote: post #66
moab wrote: post #40

Earlier quoted context omitted.

How can you feel sorry for them? They're professors of LAW at Stanford. And this white-collar crime was being committed right under their noses. Pynchon would have had trouble coming up with a plot this wacky.

SBF just played along with the sheer insanity of the concept of crypto (nothing can make nothing) and all the fools who gave him money - it seems that common financial sense is not taught to people anymore or is really in short supply these days. Did people actually listen to him whenever he spoke - whenever did any of his BS make any financial sense ???. https://www.youtube.com/watch?v=C6nAxiym9oc

> nothing can make nothing

You can make money just buy buying money.

There are billionaires in currency arbitrage.

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