Federal Judge Reveals Co-Signers of Sam Bankman-Fried’s Bail Deal
A federal judge has released the names of two people who co-signed Sam Bankman-Fried’s $250 million bail deal, which allowed him to be released on house arrest while he awaits trial on federal fraud and conspiracy charges. The identities of the guarantors were revealed in court documents made public on Wednesday afternoon.
The co-signers were Larry Kramer, a former dean of Stanford’s law school, and Andreas Paepcke, a Stanford computer scientist. Kramer and Paepcke each signed bonds worth $500,000 and $200,000, respectively. Bankman-Fried’s parents, both Stanford law professors, are also guarantors, and used their Palo Alto, California, home to secure the bond.
The release of the guarantors’ names came a day before Bankman-Fried was set to appear in New York federal court for a bond hearing.
Bankman-Fried, the founder of the cryptocurrency trading platform FTX, was arrested in November 2021 and charged with eight counts of fraud and conspiracy related to the collapse of his crypto empire. He has pleaded not guilty to the charges.
Prosecutors have described Bankman-Fried’s bail deal as one of the largest ever pre-trial bonds. However, neither Bankman-Fried nor the guarantors will have to pay any amount unless he fails to show up to court.
The release of the guarantors’ names followed an objection from Bankman-Fried’s defense lawyers, who sought to keep the names redacted, citing concerns for their privacy and safety. However, Judge Lewis Kaplan ordered that the bonds be placed on the public court docket after an appeals court failed to rule in time.
In addition to revealing the names of the co-signers, prosecutors on Wednesday asked the judge to significantly restrict Bankman-Fried’s use of cellphones, computers, and the internet. This request followed days after prosecutors said Bankman-Fried contacted a former FTX employee who is a potential government witness.
“There is now a record before the Court of a defendant who appears motivated to circumvent monitoring and find loopholes in existing bail conditions,” prosecutors said in a letter to the judge.
Prosecutors proposed limiting Bankman-Fried’s use of electronic devices to prepare for trial, allowing only a Gmail account, voice calls, and SMS text messaging. He could use Zoom to communicate with his attorneys, they said.
They also asked the judge to limit Bankman-Fried to one computer and one cellphone, which would have a monitoring system installed on them. He would also have to make his devices available for search if there is a suspicion that he deviated from the bail conditions, they proposed.
Judge Lewis Kaplan previously expressed concern about Bankman-Fried’s use of any application or device that could be encrypted or have auto-delete functions.
