Sam Bankman- Fried was released on a $250 million bail after a hearing in New York federal court, where he is facing serious criminal charges over the collapse of his FTX exchange.

Bankman-Fried had to give up his passport and agree to be monitored and confined to his parents' Palo Alto home in order to be granted the largest-ever pre- trial bond.

According to the bond agreement filed in court, there were exceptions for medical, substance abuse, or mental health treatment.

Large bail amounts don't necessarily have to be paid out, but they need to be secured in some way to make sure that a person doesn't violate their terms. In this case, Bankman-Fried's parents' home in Palo Alto has such a security, along with other types of collateral posted by other people.

In media interviews last month, Bankman-Fried said that he had just $100,000 in his account.

The value of the home in question doesn't have to correlate to the bail amount in order to provide assurance that a person will comply with the conditions of their release.

Sometimes defendants will sign bonds in the amount of hundreds of thousands of dollars when everyone knows they don't have a penny to their name.

A representative for Bankman-Fried wouldn't comment on the case.

After pleading guilty to their roles in the alleged schemes, Bankman-Fried's former associates, including ex-girlfriend and former Alameda CEO, and FTX co- founder Gary Wang, have been released on bond.

According to their plea agreements, they were each told to submit to a $250,000 bond and to stay within the United States.