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Former Stanford Law School dean co-signed bail bond for FTX's Bankman-Fried

 1 year ago
source link: https://finance.yahoo.com/news/former-stanford-law-school-dean-co-signed-bail-bond-for-ftxs-bankman-fried-204303031.html
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Former Stanford Law School dean co-signed bail bond for FTX's Bankman-Fried

Sam Bankman-Fried pleads not guilty in FTX fraud trial
 Former FTX CEO Sam Bankman-Fried 
 pleading not guilty to fraud 
Sam Bankman-Fried pleads not guilty in FTX fraud trial
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Alexis Keenan
·Reporter
Thu, February 16, 2023, 5:43 AM GMT+9·4 min read

The names of the wealthy backers who guaranteed indicted FTX co-founder Sam Bankman-Fried's $250 million bail bond were finally revealed Wednesday.

Former Stanford Law School dean Larry Kramer and Stanford University research scientist Andreas Paepcke helped make it possible for the former CEO to remain out of federal custody as he awaits trial, unsealed court documents reveal.

The court filings were made public by Manhattan U.S. District Court Judge Lewis Kaplan, who is presiding over the embattled entrepreneur's criminal fraud case. Bankman-Fried's previously objected to disclosing the names.

Kramer and Paepke each co-signed Bankman-Fried's unsecured personal recognizance bonds, pledging property worth $500,000.

Typically, a defendant must pledge assets equal to around 10% of the bond amount. In Bankman-Fried’s case, his bond was set at $250 million — one of the largest bail figures in history — meaning he could be expected to pledge assets totaling around $25 million.

Before the details of the bail arrangement were made public, court documents showed that Bankman-Fried's bond was secured in part by a San Francisco Bay Area home valued around $4 million and owned by the defendent's parents, as well as two to four individuals of “considerable means.”

Former FTX chief executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks from the Manhattan federal court after securing bail in New York City, U.S. December 22, 2022.  REUTERS/Jeenah Moon
Former FTX chief executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, walks from the Manhattan federal court after securing bail in New York City, U.S. December 22, 2022. REUTERS/Jeenah Moon

Bankman-Fried's father, Joseph Bankman, has been employed as a professor at Stanford Law School since 1988. He is also a clinical psychologist who teaches courses in mental health law. His mother, Barbara Fried, also served as a Stanford Law professor before retiring in September. According to The Wall Street Journal, Joseph Bankman also spent 11 months serving as a paid employee of FTX for 11 months. The Journal's report states that he was focused on FTX's charity efforts.

The request to unseal the names came from a group of news organizations that asked to intervene in the case for the limited purpose of disclosure. They argued that the public had a right to know the identities of individuals who backed Bankman-Fried's release.

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