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What are the terms? They include:
He’s on home detention at his parents’ house with an ankle monitor.
He’s under “intensive” pretrial supervision, which means Pretrial Services — sort of like a probation office for people before trial — will be watching him very carefully and checking in frequently. They’ll also determine when he’s allowed to leave his parents’ home (usually for medical appointments, church, lawyer visits, and work if he’s employed).
He’s had to surrender his passport and can’t go anywhere other than the Northern District of California (where he’ll live with his parents) and the Southern District of New York (where he’ll go on trial).
He can’t open a business or engage in financial transactions over $1,000 or open lines of credit without government approval.
But what about the money? The headlines all said he was released on a $250 million bond. That’s a lot, right?
Yes, it certainly is. But most of that is not secured — it’s just a promise to pay it if he flees or breaks the terms of release. That distinguishes it from bonds that must be posted as cash, or which must be “fully justified,” that is fully backed by real property or other assets. The financial terms are:
The total bond amount — the amount he promises to pay if he breaks the terms of release — is $250 million.
His parents co-signed the bond, meaning they are on the hook for that amount (which they can’t pay, obviously) if he breaks the terms of the bond.
Two non-parent sureties have to sign the bond, pledging amounts approved by the government, by January 5. That means Bankman-Fried must find two non-parent supporters with substantial assets to agree to sign off on the bond and be responsible for up to a specified amount (likely in the hundreds of thousands) if he breaks the terms of the bond.
His parents must post the equity in their home by January 5. That means they have to file with the court and record documents entitling the government to the equity in their home if he breaks the bond conditions. Given the home, which they bought in 1991 and is in Palo Alto, that’s likely millions of dollars in equity.
