Aaryamann Shrivastava
FXStreet
- Former FTX CEO is being investigated for fraud and illicit use of customer funds following extradition from the Bahamas.
- The bail conditions limit Sam Bankman-Fried to conduct transactions worth less than $1,000 at all times.
- Earlier this week, FTX and Alameda Research executives pleaded guilty to multiple charges.
The FTX saga continues to leave the world surprised, with the federal court approving bail for ex-CEO Sam Bankman-Fried. Despite having a barrage of charges to his name and being labeled as a “flight risk” by the Bahamian authorities, the United States court has given him conditional bail.
FTX head Sam Bankman-Fried could get bail
FTX collapse has been pinned on Bankman-Fried since its revelation and continues to do so. The former head has been stated as the mastermind of the entire Alameda Research debacle. Consequently, he has been charged with fraud as well as unlawful usage of customer funds which, upon discovery, triggered the market crash.
Regardless, the federal court approved bail for the disgraced CEO but with certain conditions. Firstly, Bankman Fried cannot make any transactions worth more than $1000 as well as open new lines of credit. Secondly, he is also restricted from leaving the house except for exercise and treatments.
However, the bail amount has been set at $250 million, which could be submitted by Bankman Fried’s parents in order to pull him out of the hail. A bail amount this high sounds crazy and also impossible. But in comparison to the $10 billion FTX owes to its customers, this amount is relatively low.
Former FTX and Alameda executives surrendered
As reported by FXstreet, the once heads of the companies, co-founder Gary Wang and Alameda Research former CEO Caroline Ellison, pleaded guilty and accepted the charges against them. The FTX and Alameda executives are cooperating as well.
Charged by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the FTX and Alameda Research heads are facing the music for fraud as well as manipulation of the native token FTT price.
Going forward, US attorney Damian Williams noted that more announcements will follow and that the investigations are still underway.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.