Sam Bankman-Fried’s parents used their house to bail him out. But they rent the land from Stanford

San Francisco Chronicle ^ | January 30, 2023 | Kiera Feldman

[artichokegrower]

Shortly before Christmas, FTX founder Samuel Bankman-Fried, indicted on federal charges of fraud and money laundering, was released on a $250 million bail bond that was secured by his parents’ Palo Alto-area home.

The size of the bail bond — 25 times bigger than Bernie Madoff’s — garnered considerable attention. The prosecution termed it “the largest ever pretrial bond.” What hasn’t drawn notice is the fact that Joseph Bankman and Barbara Fried, who are professors at Stanford Law School, are not typical homeowners. Their property is a faculty home on the Stanford campus itself. Stanford owns the land, and Bankman and Fried lease it.

[artichokegrower]

What a scam. The acorn doesn’t fall to far from the tree

[Huskrrrr]

This is typical at Stanford, many faculty cannot afford to buy a house. The parents and SBF all stink.

[newzjunkey]

Eight hundred such houses on campus that only faculty can buy?

Of course the article claims it’s a privilege and classist thing that he got this bail deal. Obviously they’re advocates of cashless bail in San Francisco

[Renfrew]

Selfish brat. You’d think the that after stealing his first billion he would have bought his parents a house.

[Wayne07]

It isn’t really a big deal - they effectively own the house. It has a market value, and they can sell it anytime (to other Stanford faculty).

Here is a current listing in the neighborhood ($3.1 million!!). Note the faculty restriction.

https://www.redfin.com/CA/Palo-Alto/728-Tolman-Dr-94305/home/1651862

[ridesthemiles]

IF HOUSE is NOT worth $250 MILLION-—How can that be collateral???

[Vaduz]

Fried, indicted on federal charges of fraud and money laundering the democrats are going to protect that boy he ain’t going to hang himself a cell he’s a gold mine.

Not all the money was lost just in safe keeping.

[Wayne07]

You don’t have to post the full bail amount, just a small percentage. The $250m is what is owed if Bankman doesn’t show up. The $3.5m house (plus about $1m cash) is basically just a deposit.