FTX Founder Released Without Paying a Single Cent of the 320 Billion Won Bail

Released on 5.1 Billion Won Parent's House Mortgage
Even Less Than 10% of Bail Amount

[Asia Economy Reporter Sumi Hwang] Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX who was extradited to the United States, was released on bail worth 320 billion won without paying a single cent of his own money.

According to the New York Times (NYT) and others, the U.S. Southern District Court of New York approved Bankman-Fried's release on the 22nd (local time) on charges including fraud. The bail was set at a record high of $250 million (approximately 320.75 billion won) before the trial.

However, Bankman-Fried was released without paying any of the bail money from his own funds. According to Bloomberg, bail amounts are set symbolically to reflect the severity of the defendant's felony charges. Therefore, bail can be granted if assets equivalent to about 10% of the stated amount are provided as collateral.

Sam Bankman-Fried, founder of FTX. Photo by Reuters

Bankman-Fried posted his parents' house as collateral for the bail. His parents guaranteed that they would pay the bail if Bankman-Fried violated the conditions of his release. Additionally, by January 5 of next year, Bankman-Fried must secure two more guarantors who possess substantial assets.

The NYT explained, "Bail essentially represents the defendant's promise to appear in court, and Bankman-Fried is not forced to pay the bail amount. If Bankman-Fried fails to appear in court, his parents' house will be seized."

Some voices have raised doubts about the legitimacy of the bail procedure. Critics argue that it is inappropriate for a defendant, identified as a key figure in the FTX cryptocurrency fraud involving the embezzlement of billions of dollars of customer funds, to be released without paying any money.

James Murphy, head of the law firm Murphy & McGonigle, criticized through the cryptocurrency media CoinDesk, saying, "It is absurd that Bankman-Fried signed a paper promising to pay bail and became a free man. Millions of FTX customers who were victims of the coin fraud will not find this situation amusing."

On the 22nd (local time), a trial scene of Sam Bankman-Fried, founder of the cryptocurrency exchange FTX, held at the United States District Court for the Southern District of New York. Photo by Reuters Yonhap News

The value of the house posted as collateral is only $4 million (about 5.1 billion won), far below 10% of the bail amount, which also raises doubts about Bankman-Fried's release procedure.

Meanwhile, Bankman-Fried, released on bail, will be under house arrest at his parents' home in Palo Alto, California, during the trial. He must wear an electronic monitoring bracelet during the bail period, and if he fails to appear in court, a warrant will be executed to forcibly bring him to court.

According to the NYT, Bankman-Fried boarded a flight to San Francisco to go to his home in California immediately after his release on the 22nd. It was confirmed that he used the American Airlines lounge at New York JFK Airport and traveled in a business class seat.

This content was produced with the assistance of AI translation services.