Episode Details

Ties of this story to Real estate have peaked my interest.  

#1 was the notice of bond being tied to his parents home on the Stanford campus

#2 was the use of the word commingling of funds, which is also a big no-no word in Real Estate

#3 was alleged use of those funds to by real estate in other countries such as the Bahamas.

Bankman-Fried [SBF] will be back at the home he grew up in, a house in the middle of Stanford’s campus, according to federal political filings that disclose the address. He will remain under house arrest, but can leave for substance use treatment, exercise and mental health purposes. 

US District Judge Gabriel Gorenstein signed off on the deal Thursday, allowing the disgraced FTX founder and ex-CEO — who is staring down a slew of charges which carry a sentence of up to 115 years — to leave New York for his home state.

In granting him pretrial release, Gorenstein said Bankman-Fried had "achieved sufficient notoriety that it would be impossible" for him to engage in further financial schemes or to hide without being recognized.

Nicolas Roos, a prosecutor, told Gorenstein that the bail package would require Bankman-Fried to surrender his passport and remain in home confinement at his parents' home in Palo Alto, California. He would also be required to undergo regular mental health treatment and evaluation.

Cohen [SBF Atty] said he agreed with prosecutors' proposed bail conditions. He noted that Bankman-Fried's parents - both Stanford Law School professors - would co-sign the bond and post the equity in their home as assurance for his return to court. Both appeared at the hearing.

The record-breaking bond would be partially secured by Bankman-Fried’s parents’ interest in their five-bedroom, three-bathroom home — which Zillow estimates to be worth north of $4 million — and that equity would have to be paid within three weeks, Gorenstein said.

"My client remained where he was, he made no effort to flee," Cohen [SBF Atty]  said.

The bond is meant to ensure that if Bankman-Fried flees, the government could confiscate the family's assets - including their Palo Alto home - up to $250 million. Reuters could not determine the family's total net worth.

Bankman-Fried said at a New York Times conference on Nov. 30, following the exchange's collapse, that he had $100,000 in his bank account.

Roos [prosecutor] said that evidence at trial would consist of testimony from "multiple cooperating witnesses," [Ellison and Wang] as well as thousands of pages of written communications.

Just hours after Bankman-Fried's plane from the Bahamas took off, Damian Williams, the top federal prosecutor in Manhattan, announced that two of Bankman-Fried's closest associates - former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang - had pleaded guilty and were cooperating with prosecutors.

The alleged crypto grifter will be able to leave his parents’ house for exercise, mental health and substance abuse treatment. He will also be allowed to shop online, but is banned from making any non-sanctioned payments above $1,000 that aren’t legal fees, prosecutors said. 

Assistant US Attorney [the PROSECUTOR!!!] Nick Roos argued in favor of the house arrest, saying the fact that Bankman-Fried “voluntarily consented to extradition” from the Bahamas “should be given weight.”