Stanford ex-law dean, researcher co-signed FTX founder Bankman-Fried’s bond

NEW YORK – A former dean at Stanford’s law school and a computer science researcher at the university co-signed indicted FTX crypto exchange founder Sam Bankman-Fried’s bond, according to court records made public on Wednesday.

Bankman-Fried, 30, has pleaded not guilty to fraud charges over the

collapse of the now-bankrupt cryptocurrency exchange.

Federal prosecutors in Manhattan say he diverted billions of dollars in FTX customer funds to Alameda Research, his hedge fund.

Bankman-Fried has been out on US$250 million (S$334 million) bond

co-signed by his parents Joseph Bankman and Barbara Fried, professors at Stanford Law School, who pledged their Palo Alto, California, home as collateral for their son’s return to court. His trial is set to begin in October.

The names of two other sureties had been redacted until Wednesday, when United States District Judge Lewis Kaplan ordered their identities be made public.

On Jan 25, former dean Larry Kramer signed a US$500,000 bond to ensure Bankman-Fried’s return to court, while computer science researcher Andreas Paepcke signed a US$200,000 bond, the newly unredacted records showed.

In a statement, Mr Kramer said he and his wife have been friends with Mr Bankman and Ms Fried for decades. He said they had been supportive in the past two years “while my family faced a harrowing battle with cancer”.

“In turn, we have sought to support them as they face their own crisis,” Mr Kramer wrote. “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.”

Mr Paepcke did not immediately respond to a request for comment.

Judge Kaplan last month ruled in favour of several media outlets, including Reuters, which argued that the two names should be made public, but put his ruling on hold pending an expected appeal.

Bankman-Fried said last week he would appeal that decision, but did not ask the appeals court for an additional delay by Tuesday evening as required, Judge Kaplan wrote. Bankman-Fried’s legal team decided not to pursue the appeal, a person familiar with the matter told Reuters.

Bankman-Fried’s lawyers have said the parents had been harassed and received physical threats since FTX’s collapse and bankruptcy in November, and there was “serious cause for concern” that the other guarantors might suffer similar treatment.

The group of media outlets argued that the public’s right to know the identity of Bankman-Fried’s guarantors outweighed their privacy and safety rights.

The revelation of Bankman-Fried’s bail guarantors comes amid a prolonged dispute over the terms of his bail. He was recently barred from using encrypted apps, such as Signal, after he used the platform to contact FTX’s US general counsel, a potential witness in the case.

Judge Kaplan has expressed further concern about Bankman-Fried’s ability to engage in secret communications with witnesses and others involved in the case. The judge rejected an earlier deal on the FTX founder’s use of apps and on Tuesday barred him from using virtual private networks (VPNs), which conceal a user’s IP address. Bankman-Fried’s lawyers claimed he used a VPN to watch National Football League games, including the Super Bowl.

The bail conditions will be discussed at a hearing in federal court in Manhattan on Thursday. REUTERS, BLOOMBERG