Bankman-Fried's Incredible Shrinking ‘$250 Million Bond’

News outlets all around the globe reported that Bankman-Fried got out of jail by posting a gargantuan, unprecedented “$250 million bond.” In court, Assistant U.S. Attorney Nicholas Roos described it as the “largest ever” pretrial bond.

But, as it turns out, there is less than meets the eye in this “$250 million bond.” In fact, a lot less.In the typical federal case, a bail bondsman would charge between 10%-15% of the amount in cash to issue a surety bond or “bail bond.” In the case of Bankman-Fried’s astronomical bond, 15% of $250 million would be $37.5 million. But Bankman-Fried did not pay $37.5 million for his bond. No, Bankman-Fried actually paid no cash at all for his “$250 million bond.” Nothing. Zero.

Yes, you read that right. Bankman-Fried walked out of court essentially a free man by signing a piece of paper where he promised to pay the court $250 million if he decides to flee to another country with no extradition. This, of course, is totally absurd.The attempt by the prosecutor’s office to sell this as some extraordinarily onerous bail condition would be laughable. Except the millions of customers who Bankman-Fried defrauded aren’t laughing.

Who could have imagined that the Bahamas would have stricter bail laws for financial fraud than the United States?interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.James A. Murphy, a securities lawyer and legal writer, was the founder and chairman of law firm Murphy & McGonigle.

Source: Law Daily Report (lawdailyreport.net)

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