Bankman-Fried himself was released on bail after two anonymous people deposited a combined $700,000, according to court records.
Bankman-Fried, a disgraced former crypto tycoon whose FTX exchange declared bankruptcy in November, has been under house arrest at his parents’ home in Palo Alto, California, for $4 million since last month.
He was released from federal custody in Manhattan on $250 million bail after being extradited from the Bahamas to face fraud and money laundering charges in reference to the collapse of FTX.
According to court documents, under the terms of his release, one of his sponsors posted bail of $500,000 while the opposite posted $200,000 seen by Insider news site. The identities of the 2 remain secret on the request of Bankman-Fried’s lawyers, who say making their names public could pose a security risk.
Christian Everdell, one of Bankman-Fried’s lawyers, revealed the dimensions of the contributions in order that the federal judge overseeing the case – U.S. District Judge Lewis Kaplan – would come with them within the bail documents, according to Insider.
“Due to this fact, we respectfully request the court to update the bail conditions to reflect that the 2 non-parent sureties will sign separate bail bonds prepared by the magistrate’s office of $500,000 and $200,000 respectively,” Everdell wrote.
Kaplan was approached by several media outlets to reveal the identities of the 2 bail sponsors. Nevertheless, a judge ruled last week that the names would “remain sealed” pending a final ruling on the case.
The bond was also secured after Bankman-Fried’s parents—Stanford law professors Joseph Bankman and Barbara Fried—posted their home as collateral.
The family hired a $10,000-a-week armed security guard to guard their Palo Alto home after an accused cryptocurrency fraudster received death threats.
“Recently, the Bankman-Frieds had a security incident at their home when a black automobile drove right into a metal barricade set up in front of their home,” Everdell wrote in Thursday’s lawsuit.
“Three men got out of the automobile. When the safety guard on duty stood in front of them, the lads said something like, “You will not have the opportunity to stop us.”
Everdell wrote, “The lads returned to the automobile and drove away quickly before the safety guard could see the license plate.”
FTX, which was once valued north of $26 billion, collapsed after customer funds were used to cover dangerous bets by Bankman-Fried hedge fund Alameda Research. Bankman-Fried denied any wrongdoing and pleaded not guilty.
Bankman-Fried was also required to give up his passport and wear an ankle bracelet to monitor his movements.