Latest crypto news concerning Sam Bankman-Fried following the collapse and bankruptcy of FTX: a federal judge has ruled that the names of the co-signers of SBF;s bonds should be revealed, since Bankman-Fried did not address the appeals court.
Summary
Co-signers of SBF, former CEO of now-bankrupt crypto exchange FTX
US District Judge Lewis Kaplan of the Southern District of New York initially ruled in favor of news outlets, including CoinDesk, which want the names of Bankman-Fried’s signatories to be public.
However, the judge did not reach a ruling, pending appeal. While Bankman-Fried’s lawyers filed a notice that they would appeal, they did not file the actual appeal, the judge said in a new ruling Wednesday.
The petitioners turned out to be Andreas Paepcke and Larry Kramer of Stanford University, who put up $200,000 and $500,000, respectively. Bankman-Fried’s parents are both Stanford instructors.
Paepcke is a senior researcher, while Kramer is a former dean of Stanford Law School.
Kramer recently stated that it was his friendship with Bankman-Fried’s parents, Barbara Fried and Joseph Bankman, that led him to post bail for the now disgraced former FTX CEO.
Specifically, Kramer, in a statement provided to CoinDesk revealed the following:
“Joe Bankman and Barbara Fried have been close friends of my wife and I since the mid 90’s. For the past two years, as my family has endured a harrowing battle with cancer, they have been the truest of friends: bringing food, providing moral support, and frequently stepping in when needed to help. In turn, we have tried to support them as they navigate their crisis.”
Co-signer statements: who are SBF’s supporters
In addition to the above, Kramer further stated:
“My actions are in my personal capacity, and I have no business dealings or interest in this matter other than to help our loyal and steadfast friends. Nor do I have any comment or position regarding the substance of the legal matter itself, which is what the trial will be for.”
In contrast, Paepcke did not immediately respond to CoinDesk’s request for comment.
As we know, Bankman-Fried was arrested in December but released on $250 million bail.
His parents signed for the bond, putting up their Stanford home as collateral. The names of the other two signatories, however, were at first blacked out. Who are the co-signers of SBF?
Andreas Paepcke is a senior researcher and director for data analysis in support of online teaching efforts at Stanford University. In the past, Paepcke and his student groups designed and implemented WebBase, an experimental high-speed storage and dissemination system for Web content.
Larry Kramer, the only one to make a statement at the time, is also dean emeritus of Stanford Law School, a member of the American Academy of Arts and Sciences and a member of the American Philosophical Society.
He serves as chairman of the board of iCivics and as a director on the boards of several non-profit organizations, including the National Constitution Center, Independent Sector and the ClimateWorks Foundation. In addition, he has been president of the William and Flora Hewlett Foundation since 2012.
SBF’s release on bail after the FTX crypto exchange bankruptcy
As anticipated, Sam Bankman-Fried left federal court in December essentially a free man. News outlets around the world reported that Bankman-Fried got out of jail by posting an unprecedented giant “$250 million bond.”
In court, Assistant US Attorney Nicholas Roos described it as the “largest ever” pretrial bond. But as it turns out, there is less to this “$250 million bond” than meets the eye.
In a typical federal case, a bail bondsman would charge between 10% and 15% of the cash amount to issue a bond or “bail bond.” In the case of Bankman-Fried’s astronomical bond, it would be $37.5 million.
However, Bankman-Fried did not pay $37.5 million for his bond. In fact, Bankman-Fried has not actually paid cash for his “$250 million bond.” There is a second way to acquire a bond. A defendant, or someone on his behalf, can pledge the full amount of the bond.
Then, if the defendant fails to appear in court, the pledged bond is forfeited by the court. That is, in Bankman-Fried’s case, this would mean that he would need a benefactor to step up and pledge property worth $250 million to get the bond.
In this case, Bankman-Fried’s parents have promised to pledge as collateral their home in Palo Alto, California, where he will also remain under house arrest. The Palo Alto house is said to be worth $4 million.
And that is the full extent of the guarantee pledged to secure the $250 million bond. No other collateral has been posted or pledged.
