Former Stanford law dean was among bond guarantors for FTX founder Sam Bankman-Fried
FTX founder Sam Bankman-Fried returned to court on Thursday to explain why he keeps accessing parts of the internet that the government can’t monitor and how it might affect his bail. (AP Photo/Seth Wenig)
Two people associated with Stanford University have been revealed as the mystery sureties who helped guaranty the $250 million recognizance bond for FTX Trading founder Samuel Bankman-Fried, the son of law professors at the school.
The mystery guarantors were revealed after U.S. District Judge Lewis A. Kaplan ordered that their names be unsealed. They are former Stanford Law School dean Larry Kramer, who signed a $500,000 unsecured bond to guarantee Bankman-Fried’s return to court, and Stanford University research scientist Andreas Paepcke, who signed a $200,000 unsecured bond, report Law360, Reuters and CNBC. Kramer was Stanford law dean from 2004 to 2012.
Bankman-Fried’s parents, Stanford law professors Joe Bankman and Barbara Fried, put up their home as collateral to guarantee bond.
Bankman-Fried is facing criminal charges for an alleged $1.8 billion fraud in connection with the collapse of FTX Trading. Prosecutors allege he touted FTX as a safe platform for crypto asset trading while diverting investor money to his privately held hedge fund.
Kramer said in statements to the publications that he and his wife have been longtime close friends with Bankman and Fried, who were by his family’s side when they “faced a harrowing battle with cancer.”
“In turn, we have sought to support them as they face their own crisis,” Kramer said.
On Thursday, Kaplan held a hearing in which he expressed that Bankman-Fried needs tougher bail restrictions, the Wall Street Journal reports. Kaplan expressed dismay that Bankman-Fried had violated restrictions on his internet and encryption use, which prosecutors say might be considered witness tampering. Pointing out that while in his parents’ house, Bankman-Fried had access to many computers and phones, Kaplan asked, “Why am I being asked to turn him loose in this garden of electronic devices?”
The judge asked both sides to come back with proposals for tighter restrictions for Bankman-Fried, and hinted that he could remand Bankman-Fried to jail, saying, “There is a solution, but it’s not one anyone has proposed yet.”