• Sam Bankman-Fried was released on a $250 million bond, but he didn’t pay any of it in cash.
• The bond was acquired through collateral, which would be forfeit if Bankman-Fried fails to appear in court.
• Former SEC Enforcement Branch Chief Lisa Bragança discussed the latest legal developments.

Sam Bankman-Fried, founder of FTX, walked out of federal court a free man on Thursday after posting a record-breaking $250 million bond. Reports say that the bond was the largest ever pretrial bond, but the truth is far less than meets the eye. Assistant U.S. Attorney Nicholas Roos described it as a “gargantuan bond.”

Typically, a bail bondsman would charge between 10%-15% of the bond amount, in cash, to issue a surety bond or “bail bond.” In this case, 15% of $250 million would be $37.5 million, but Bankman-Fried did not pay any of that. Instead, he put up collateral in the same amount of the bond, and if he fails to appear in court, that collateral is forfeit to the court.

After his release, Bankman-Fried has arrived at his parents’ home in Palo Alto, California, where he will remain under house arrest while awaiting his federal trial on multiple charges of fraud. Former SEC Enforcement Branch Chief and Bragança Law Attorney Lisa Bragança spoke on the legal developments, including the unprecedented bond.

The news of Bankman-Fried’s bond has made waves, with many speculating about the details of the bond and what it means for the case. Bankman-Fried has yet to enter a plea in the case, but whatever the outcome, his release on the $250 million bond signifies a significant development in the court proceedings. Time will tell what effect this massive bond will have on the case, but for now, it is clear that Bankman-Fried is out of jail and awaits his trial from the comfort of his home.

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