The Crypto Community Reacts to SBF Bailout
The founder and former CEO of FTX company Sam Bankman-Fried (SBF) was granted a $250 million bail bond on Dec. 22. by the United States District Court for the Southern District of New York.
According to the condition of the pronouncement, SBF will be allowed to spend Christmas in his parent’s Palo Alto home without the need for an upfront payment.
It should be noted that the former FTX boss arrived in New York from Bahamas on Dec. 21 following the completion of the extradition process. He, thereafter, appeared before the court on Dec. 22 and was later released on bail via “personal recognizance bond” condition.
The personal recognizance bond is a form of written promise by the defendant, promising to show up for future court appearances whenever needed for further inquiry or investigation.
In light of the foregoing, no cash was required to be deposited with the court but the bond conditions hold that SBF’s parent’s five-bedroom residence located in Palo Alto will stand as collateral for the $250 million bond.
Crypto Community Reacts to Bail Conditions
Following the no-upfront-cost bail conditions by the United States District Court for the Southern District of New York, a number of users within the crypto community have expressed mixed feelings on the judgement.
A user, Benjamin Cowen, queried how SBF was able to raise $250m bail funds after initially stating that he had only $100,000.
Funny how SBF is able to post the $250M bail not long after saying he only had $100k.
So he probably is using stolen customer deposits to stay out of jail.
— Benjamin Cowen (@intocryptoverse) December 22, 2022
Meanwhile, it appeared Cowen misconstrued the judgement as SBF is only mandated to make a payment of $250m if he doesn’t appear for future court appearances or violate bail conditions.
In the same vein, the Host of the Wall of All Streets Podcast Scott Melker asserted on Dec. 23 that if SBF defaults on the bail conditions or refuses to show up, his parents will have to find 17 extra jobs before they can raise the money.
SBF didn’t have to pay 250m to get out of jail.
Or anything, most likely.
But if he skips bail or doesn’t show up, his parents are going to have to work 17 extra jobs to come up with the money.
— The Wolf Of All Streets (@scottmelker) December 23, 2022
However, Vocal crypto Twitter user Autism Capital further clarified the bail condition, stressing that SBF only put his parents, relatives, and non-relatives in a tight condition. There is still a long way to go in the ongoing investigation into FTX collapse.
Sam is out on a personal recognizance bail. What this means is that NO MONEY has been paid. His parents put up their home as collateral, one relative and a non-relative have also put up collateral. All of them would be on the hook for $250M if Sam runs. https://t.co/F85qHFVQDQ
— Autism Capital 🧩 (@AutismCapital) December 22, 2022