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

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

#261

Post by CydeWeys »

shafyy wrote: post #175

It's so wrong that rich folks can just skip jail. I'm just reading Harari's Sapiens, and one of his points is that it's crazy that today it's accepted that poorer people are discriminated against. That many people think that being poor is a not something that happens by chance, but by people being lazy or dumb.

> It's so wrong that rich folks can just skip jail.

He hasn't been convicted of a crime. What's wrong is for people who haven't been convicted of a crime to spend time in jail, especially in situations like this where he isn't posing a physical danger to the community (and indeed won't even be leaving the house anyway).

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

#262

Post by hn_throwaway_99 »

dragonwriter wrote: post #152
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…

But when you pay a bail bond to a bondsman, you never get that 10% back. You are paying for the service of NOT having to put up the full amount, as the bail bondsman is the one who is ultimately on the hook.

I highly doubt anyone paid $25 million that they aren't expecting to get back.

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

#263

Post by jacquesm »

csense wrote: post #260
hollerith wrote: post #232

Earlier quoted context omitted.

A financial intermediary trusted by the court pledges to pay the court the 250M if SBF flees and the intermediary cannot find him and take him back into custody. For typical bail amounts i.e., $50k, the intermediary usually demands 10% of the $50k from the defendant (and his friends) as a deposit, but maybe SBF found an intermediary willing to make the pledge to the court for a deposit significantly less than 10% of…

Okay so it's basically a bail bond, sign over the $2M house to get the bondsman to post $250M bond. What bondsman has $250M? Even if they did, why would they ever agree to this? Isn't getting $2M from a defendant on a bail bond less than even the interest you could probably get by just putting your $250M in, say, a Treasury bond over the same timeframe? For that matter, who's willing to bet $250M at 99-to-1 payout od…

You also need to factor in the cost of plastic surgery and a new identity because I guarantee that if he 'just' skips to Dubai he won't be safe.

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

#264

Post by danrocks »

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…

Wouldn't it be interesting if the people who secured the other part of his bail bond are all rich individuals holding all of their net worth in crypto?

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

#265

Post by jacquesm »

lamontcg wrote: post #239
happyopossum wrote: post #205

Earlier quoted context omitted.

> secured only on his parents’ home in Palo Alto, This part is incorrect - his parents and 2 other individuals with ‘significant assets’ signed on his bond.

That makes more sense. He probably has a billionaire friend or two.

It'd be nice to know who and how they got their billions.

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

#266

Post by danrocks »

csense wrote: post #227
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…

> on bail for a $250 million bond — secured only on his parents’ home in Palo Alto Wait what? How does that work? I thought if the bond was $X, that literally means you either (a) give the court $X, cash only or (b) sit in jail until trial. How can his bond be set at $250 million, yet the court somehow isn't just making him sit in jail until and unless he either goes to trial and is found not guilty, or he coughs up…

Do his backers get the bond money back if he does show up and the process runs without any hiccups?

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

#267

Post by coldtea »

jjtheblunt wrote: post #186
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…

His parents' home isn't worth anything like that. Does that mean only a fraction of the bond value needs to be the security? If so, is that not bullshit?

Not any more bullshit than getting a loan by getting someone in good standing to sign they'll pay the full price if you fail.

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

#268

Post by dragonwriter »

eddsh1994 wrote: post #253
jdmoreira wrote: post #211

Earlier quoted context omitted.

They are making interest payments on 250 million USD? Wow! How much do these people earn?

Stanford professors make around $180k usually. There's no chance they're paying regular interest of a 250m loan without some financial support.

> Stanford professors make around $180k usually. There's no chance they're paying regular interest of a 250m loan without some financial support.

There is no $250M loan. Should he fail to appear, he and each of his sureties (his parents) can be pursued by the court for whatever remains of the balance of the $250M bail amount.

There is no actual $250M that changes hands until then (or, realistically, after.)

The actual order: https://www.courtlistener.com/docket/66631291/14/united-stat...

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

#269

Post by [deleted] »

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…

[deleted]

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

#270

Post by jrockway »

bigmattystyles wrote: post #257
jrockway wrote: post #240

Earlier quoted context omitted.

That seems needlessly cruel. I'm all for getting to the bottom of what SBF did, but he hasn't been convicted of any crime yet. It's important that we go through the process before applying punishments.

I wonder what those in pretrial detention in Rikers do without internet, there only because they don’t have resources to bond out.

Your solution to needless suffering is to add more needless suffering?
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