Sam Bankman-Fried’s bail guarantors included former Stanford Law dean

Two academics at Stanford University, where Sam Bankman-Fried’s parents worked, put up a combined $700,000 to help secure the FTX founder’s bail, according to court documents unsealed on Wednesday.

Larry Kramer, the former dean of Stanford Law School who is now president of the Hewlett Foundation, and Andreas Paepcke, a research scientist, put up $500,000 and $200,000, respectively, as part of a deal that has allowed Bankman-Fried to reside at his parent’s Californian home while awaiting his criminal trial on fraud charges in a federal court in New York.

The $250mn bond for Bankman-Fried’s bail, which government prosecutors described as the largest ever, was primarily backed by the Palo-Alto home of the cryptocurrency entrepreneur’s parents, both of whom have been members of faculty at Stanford University. Only a small percentage of the bond’s total value typically needs to be secured against existing assets.

Lawyers for Bankman-Fried had sought to keep the names of the co-signers to his bail agreement secret, but a judge ordered their identities to be disclosed following a challenge from several media organisations, including the Financial Times. An appeal by Bankman-Fried’s lawyers was deliberately allowed to lapse, according to a person familiar with the matter.

In a statement, Kramer, who is also a fellow of the American Academy of Arts and Sciences, said that Joe Bankman and Barbara Fried had been close friends of his since the mid-1990s.

“During the past two years, while my family faced a harrowing battle with cancer, they have been the truest of friends — bringing food, providing moral support, and frequently stepping in at moment’s notice to help,” he said.

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

Paepcke did not immediately respond to a request for comment. A representative for Sam Bankman-Fried declined to comment.

The disclosure of the bail co-signers comes amid a battle over modifications to Bankman-Fried’s bail conditions.

Judge Lewis Kaplan, who is presiding over the case, has asked the government and Bankman-Fried’s lawyers to clarify which messaging apps the defendant should be banned from using, and whether they enabled ephemeral or encrypted communications. He has also temporarily banned Bankman-Fried from using VPNs, pending a hearing on Thursday.

Bankman-Fried’s lawyers told the court their client had only used the technology to watch the Super Bowl using an NFL subscription he had bought while resident in the Bahamas.

A trial date has been set for October 2023.