Sam Bankman-Fried, the once rising star in the world of cryptocurrency has posted bail thanks to two incredibly generous guarantors. Former dean of Stanford Law School, Larry Kramer, was one of the two guarantors that assisted in the bail payment of $250 million dollars.
According to Forbes, the rationale behind his $500,000 commitment was to support his parents – close friends and former Standford Law colleagues – who are battling “their own crisis” with cancer. Although Kramer did not initially comment, he soon after shared a response via email stating, “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.” He continues, “Nor do I have any comment of position regarding the substance of the legal matter itself, which is what the trial will be for.”
Kramer, who was dean of Standford Law School from 2004-2012 co-signed Bankman-Fried’s bail alongside Andrea Paepke, Standford research scientist. Kramer mentioned to the New York Times in December, “see how this doesn’t bankrupt them.”
In 2019, Bankman-Fried launched FTX, a cryptocurrency trading platform that became one of the most popular in the world. With FTX, Bankman-Fried made a name for himself by offering a wide range of innovative products, including leveraged tokens and a prediction market.
The platform was under scrutiny from regulators in several countries, with some critics having argued that it enables risky and speculative trading. Moreover, FTX faced criticism for its close ties to controversial cryptocurrency Tether, which has been accused of artificially inflating the value of Bitcoin.
Lo and behold, the 30-year-old faces eight federal criminal charges for alleged fraud at the cryptocurrency exchange FTX. Trial is set for October 2 with Bankman-Fried facing up to a maximum prison sentence of 115 years.
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