A New York federal judge ruled on Thursday that FTX founder Sam Bankman-Fried will be released on bail while awaiting trial.
Bankman- Fried's lawyers and prosecutors agreed on the bail terms.
The former billionaire would have to wear an electronic monitoring bracelet, submit to mental health counseling, and restrict himself to the Northern District of California under the terms of his $250 million bond. He will appear in New York City on January 3.
Following his release to his parents' home in California, Bankman-Fried would need strict supervision according to the judge.
His parents were both professors at the law school. Two U.S. marshals dressed in suits and ties stood by Bankman-Fried.
To satisfy bail conditions, Bankman- Fried's parents would have to put up the equity in their home.
The former FTX CEO would not be allowed to open any new lines of credit while he waits for the trial to start.
The assistant U.S. attorney told the court that Bankman- Fried was the center of the fraud. The former billionaire has returned to the United States and has reduced his financial assets.
Bankman- Fried had previously claimed that he was down to $100,000, a steep fall from grace for a man who was once at the head of a $32 billion empire.
Bankman-Fried is accused of perpetrating a multi-billion dollar fraud on his investors, using customer funds to purchase properties, fund political donations, and backstop trades at his hedge fund.
Customer funds are missing, according to federal regulators. FTX filed for reorganization in Delaware. John Ray said he had never seen such a failure of corporate control.
Two of his lieutenants pleaded guilty and are cooperating with law enforcement. The deals for Wang and Ellison were made public.
Bankman-Fried was indicted in the Southern District of New York on eight counts, including securities fraud and money-laundering, and was flown to New York Wednesday evening.
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