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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

#421

Post by s1artibartfast »

cm2187 wrote: post #310
dragonwriter wrote: post #152

Earlier quoted context omitted.

> 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…

I don't think anyone is going to take a 250m credit risk on you if you only own 15m. And I don't think the bail would have been set in the hundreds of millions if the judge wasn't convinced SBF was loaded.

I would be more likely to take a $250 million credit risk than with 15 collateral than $2,500 credit risk with no collateral.

The point is to show you, your family, and associates have skin in the game and think you will show up at court

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

#422

Post by s1artibartfast »

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.

That is if you have no collateral to back it up

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

#425

Post by _gmax0 »

jacquesm wrote: post #137
randyrand wrote: post #133

Earlier quoted context omitted.

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

I'm surprised anybody would be willing to risk $246 M for a known fraudster. And I highly doubt their home will still be their home when this is all over.

I suppose this is equivalent to writing an option for a very unlikely downside event.

- Pledge $250M in exchange for $4M collateral and $X in interest (?) - Near certain outcome of SBF showing up into court, unless some 4-D chess plan has already been contrived to have him and parents flee (what career do they flee to? Each of them?) - Collect risk-free interest

In the case that this trade blows up, you then call Talib Nassem and tell him you have another anecdote of underpricing tail risk and he'll write about it in his next book on the folly of underestimating black swan events.

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

#426

Post by [deleted] »

ls15 wrote: post #145
pessimizer wrote: post #36

Earlier quoted context omitted.

It's good that she did, because he played her for a sucker. He routed that entire massive fraud, which she may have barely understood (we'll see), through her as the CEO of a fake company whose only purpose was to embezzle deposits from FTX customers.

> she may have barely understood Mathematics degree. Both parents economists.

[deleted]

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

#427

Post by dredmorbius »

Sebb767 wrote: post #379
bavila wrote: post #202

Earlier quoted context omitted.

It really is bizarre seeing how some people are complaining about a $250 million bond as being a "slap on the wrist". It's not a fine, it's not a punishment -- he hasn't even been convicted of anything yet. He is nothing more than a pre-trial detainee. And, yes, being under house arrest still constitutes detention. Just seems like there's so much bloodlust here against someone who -- under the United States Constitut…

This is not bloodlust. SBF has squandered away billions, including investing several hundred millions in himself. A bond is intended to be high enough so that fleeing will be unlikely but, given SBFs history, him wasting another $250 million doesn't seem that improbable compared to what he pulled off this year.

Not only high enough to make it unlikely for him, but if there have been other financial dealings (say, money laundering, offshoring, or various forms of criminal activity), which might serve interests to not see surfaced in court, then to make disappearing him overly financially painful for them as well.

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

#428

Post by pigtailgirl »

-- this thread seem to forget bond is not meant to be punitive -- it's to make sure you come back to court - the 8th amendment protects against this - if the court is going to set an excessive bond - they need to grant latitude on how it's exercised --

https://www.law.cornell.edu/wex/excessive_bail

https://nationalparalegal.edu/ViewNews.aspx?intTakeOnNewsID=...

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

#429

Post by jcpham2 »

moralestapia wrote: post #398
throwawaylinux wrote: post #395

Earlier quoted context omitted.

You're claiming the court accepted the collateral from the parents and these two other allegedly wealthy "individuals" without doing anything to verify it? If that is what happened then you are right about it being funny money, and hilarious that they duped the court like they did their investors.

>You're claiming the court accepted the collateral [...] without doing anything to verify it? Yes, I think that's exactly what happened.

I think equivalent collateral to 250 million was posted yes.

Anyone catch the AMC -> APE reverse

Let’s name the FTX tokenized stocks

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

#430

Post by alchemist1e9 »

irrational wrote: post #290
jacquesm wrote: post #265

Earlier quoted context omitted.

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

Are there any billionaires of whom it is not known how they got their billions?

Obviously yes and there are billionaires whom it is not even known they are billionaires!

As one example of some discovered - https://www.bloomberg.com/news/articles/2014-05-08/three-mys...

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