The FTX saga continues. Judging by the latest developments, a US federal court has approved the bail release of Sam Bankman-Fried, the former CEO and founder of FTX. SBF was released on parole and a hefty bail fee. Meanwhile, action was taken regarding the $450 million Robinhood stock held by the company. Here are the details…
$250M bail to FTX CEO
As we have also reported as Kriptokoin.com, the collapse of FTX continues with developments for Bankman-Fried since it was disclosed. The former head of the exchange is described as the brainchild of the entire Alameda Research fiasco. As a result, he was charged with fraud as well as illegal use of client funds. The emergence of this situation triggered the market crash.
Regardless, the federal court ordered the CEO to be released on bail. However, there were certain conditions behind his release. First, Bankman Fried will not be able to trade more than $1,000 financially. It will also not be able to open new credit lines. In addition, he will be restricted from leaving the house, except for developments such as exercise and treatment. So SBF will be under house arrest at the family home in Palo Alto. The CEO will also receive substance abuse and mental health treatment.
Apart from that, the bail amount was set at $250 million, which could be paid by Bankman Fried’s family. Such a high amount sounds crazy and at the same time impossible. But that’s relatively low compared to the $10 billion that FTX owes its customers. Meanwhile, footage of the court ordering the bail of the former FTX CEO showed SBF appearing in court wearing a wrinkled jacket and unshaven beard. While SBF’s feet were in handcuffs, his hands were free. It was also observed that the SBF remained quite silent throughout the trial.
Former FTX and Alameda executives surrender
As we report, co-founder Gary Wang and former CEO of Alameda Research, Caroline Ellison, who were once presidents of FTX, pleaded guilty and pleaded guilty to the charges brought against them. Indicted by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the heads of FTX and Alameda Research are on trial for fraud and manipulating the exchange’s native token FTT price. US lawyer Damian Williams noted that more announcements will come in the future and investigations are still ongoing.
What about the $450 million Robinhood stock?
FTX is also at war over ownership of $450 million worth of Robinhood stock, according to some documents Thursday. In the midst of this war, he sought help from a US bankruptcy court. According to the lawsuit, approximately 56 million shares of the brokerage firm are held by Emergent Fidelity Technologies Ltd., an institutional entity based in Antigua and Barbuda and 90 percent controlled by former FTX CEO Sam Bankman-Fried. The new FTX management requested an injunction for these shares.
FTX’s bankruptcy office told ED&F Man Capital Markets, the brokerage house where the shares were parked, to freeze the stock on Nov. According to the new management, Sam Bankman Fried and the 3 former partners of the stock exchange specifically tried to take control of these shares.
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