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FTX founder allowed $250M bond, house arrest

SHOTLIST:RESTRICTION SUMMARY: PART MUST CREDIT ELIZABETH WILLIAMSASSOCIATED PRESSNew York - 22 December 20221. Wide of Sam Bankman-Fried being escorted out of courthouseHEADLINE TEXT: FTX founder allowed $250M bond, house arrestANNOTATION: Cryptocurrency entrepreneur Sam Bankman-Fried left Manhattan federal court after his parents signed a $250 million personal recognizance bond. ANNOTATION: Bankman-Fried is accused of swindling investors and looting customer deposits on his FTX trading platform.++SOUNDBITE PARTIALLY COVERED++2. SOUNDBITE: (English) Larry Neumeister, Associated Press:"Sam Bankman-Fried appeared in a Manhattan courtroom today and was not required to enter a plea, but he was released on $250 million bail."3. Traveling of Bankman-Fried being escorted into a car ANNOTATION: He'll live at his parents' home in Palo Alto, California while he awaits trial. ++SOUNDBITE PARTIALLY COVERED++4. SOUNDBITE (English) Larry Neumeister, Associated Press:"Sam Beckman-Fried had an amazing last 24 hours, where he was in the Bahamas waiving extradition then he was brought to the United States overnight, getting here very late. Then he was brought to the Manhattan courthouse today, where his parents were and where they agreed to sign this $250-million bail. And the prosecutor, Nicholas Roos, said that the fact that he waived extradition was a major factor in the prosecutors not asking that he be held without bail until trial."5. Mid of Bankman-Fried being escorted out of the courthouse 6.SOUNDBITE (English) Larry Neumeister, Associated Press:"Well the judge, magistrate judge who granted and accepted the bail package said he didn't really fear the risk of flight very much because at this point, Sam Bankman-Fried has such notoriety that it would be very hard for him to hide somewhere or to not be seen if he ran to an airport, to a train depot or a bus station to try to get out of the country."ELIZABETH WILLIAMS - MUST CREDIT 'ELIZABETH WILLIAMS'New York - 22 December 20227. Courtroom SKETCH of Bankman-Fried in courtANNOTATION: The judge ordered an electronic monitoring device to be attached to Bankman-Fried before he left the courthouse. 8. Courtroom SKETCH of Bankman-Fried and lawyers in court ANNOTATION: He faces the possibility of decades in prison if convicted on all counts.STORYLINE:Cryptocurrency entrepreneur Sam Bankman-Fried walked out of a Manhattan courthouse Thursday with his parents after they agreed to sign a $250 million bond and keep him at their California home while he awaits trial on charges that he swindled investors and looted customer deposits on his FTX trading platform.Assistant U.S. Attorney Nicolas Roos said in U.S. District Court that Bankman-Fried, 30, "perpetrated a fraud of epic proportions." Roos proposed strict bail terms, including a $250 million bond — which he said is believed to be the largest federal pretrial bond ever — and house arrest at his parents' home in Palo Alto, California.An important reason for allowing bail was that Bankman-Fried agreed to waive extradition, Roos said. Reunited with his parents and lawyers inside the courthouse, an apparently silent Bankman-Fried shook the hands of a supporter before heading out the door, where photographers and video crews rushed him until he left in a car.Magistrate Judge Gabriel W. Gorenstein agreed to the bond and also approved the house arrest proposal, though he required that an electronic monitoring bracelet be affixed to Bankman-Fried before he left the courthouse. Roos had recommended it be attached Friday in California. Bankman-Fried wore a suit and tie, sat between his attorneys and did not speak during the hearing except to answer the judge. Near its end, he was asked by Gorenstein whether he understood he would face arrest and owe $250 million if he chose to flee."Yes, I do," Bankman-Fried answered. Soon afterward, the hearing ended and Bankman-Fried, his hands in his front pants pockets, was led from the courtroom by two U.S. marshals.His bail conditions also require that he not open any lines of credit larger than $1,000.The bond was to be secured by the equity in his parents' home and the signature of them and two other financially responsible people with considerable assets, Roos said. The bail was described as a "personal recognizance bond," meaning the collateral did not need to meet the bail amount.Bankman-Fried, arrested in the Bahamas last week, was flown to New York late Wednesday after deciding not to challenge his extradition.While he was in the air, the U.S. attorney in Manhattan announced that two of Bankman-Fried's closest business associates had also been charged and had secretly pleaded guilty.Carolyn Ellison, 28, the former chief executive of Bankman-Fried's trading firm, Alameda Research, and Gary Wang, 29, who co-founded FTX, pleaded guilty to charges including wire fraud, securities fraud and commodities fraud.Prosecutors and regulators contend that Bankman-Fried was at the center of several illegal schemes to use customer and investor money for personal gain. He faces the possibility of decades in prison if convicted on all counts.In a series of interviews before his arrest, Bankman-Fried said he never intended to defraud anyone.Bankman-Fried is charged with using money, illicitly taken from FTX customers, to enable trades at Alameda, spend lavishly on real estate, and make millions of dollars in campaign contributions to U.S. politicians.FTX, founded in 2019, rode the crypto investing phenomenon to great heights quickly, becoming one of the world's largest exchanges for digital currency. Seeking customers beyond the tech world, it hired the comic actor and writer Larry David to appear in a TV ad that ran during the Super Bowl, hyping crypto as the next big thing.Bankman-Fried's crypto empire, however, abruptly collapsed in early November when customers pulled deposits en masse amid reports questioning some of its financial arrangements. =====================AP Video: David R. Martin and Ted ShaffreyProduction: Patrick Orsagos===========================================================Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory.
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