SBF's Home Confinement Order in Palo Alto Sparks Outrage: 'Pitiful Joke'

A Manhattan judge granted Sam Bankman-Fried, former executive of the cryptocurrency company FTX, release from custody on Thursday on a $250 million bond and a requirement that he remain in home detention with his family in Palo Alto, California.

As part of the conditions of the release, Bankman-Fried, 30, was also required to surrender his passport and to receive mental health and substance abuse treatment.

However, many social media users have expressed their frustration that Bankman-Fried—aka SBF—was released. Several angry messages noted he is accused of misappropriating billions of dollars deposited in the cryptocurrency exchange.

"Another rich thief allowed out on bail to chill in a Palo Alto mansion," wrote one person on Twitter. "American justice is a pitiful joke."

Bankman-Fried has been charged with two counts of wire fraud and six counts of conspiracy related to securities and commodities fraud, money laundering and violating the campaign finance laws.

Until recently, though, FTX was being touted as a huge tech success story. The company enjoyed a high profile with commercials featuring stars like football legend Tom Brady and comedian Larry David. However, the company collapsed in November, and Bankman-Fried was arrested on December 12 in the Bahamas before his extradition to the United States this week.

"I'm sick. SBF to be released on $250 million dollar bond bail, tied to his parents' house in Palo Alto where he will be on house arrest without his passport," Erin Gambrel, aka The Blonde Broker, a known Influencer in the crypto industry, tweeted.

She continued, "He was cozied up in the infirmary in the Bahamas and will now be cozied up at home...THE SYSTEM HAS FAILED US ONCE AGAIN."

Gambrel also provided a statement to Newsweek.

"We are dealing with 'A punishment does not fit the crime' scenario and a system that by default favors those with money and disproportionately punishes those without. Crime DOES pay if you start with a big enough bank account," she wrote. "We are talking about someone who is apparently claiming to be broke after having misappropriated billions in customer funds and then charging him a quarter billion dollars so he can be free during that time."

She added, "And before you argue that this is his parents' money, let's recognize that [Bankman-Fried's parents] Joe and Barbara were college professors that received millions of dollars in real estate that rightly belongs to FTX investors. That's why we are angry."

"SBF really got it too easy. Flew back to US on a private jet paid for by taxpayers and now less than a day later out on $250mil bail, the largest in US history. The justice system is embarrassing because there is not justice if you have money," read another angry tweet.

Josh Rager, co-founder of the crypto information platform BlockRoots, wrote: "SBF get out of jail card. We all knew it was coming. Second largest ponzi in history, many lifes ruined. In return, he gets to sit at home in Palo Alto and play [online video game] League of Legends. Gotta love the justice system."

"So SBF will basically live free for years enjoying California weather after posting bail with stolen funds waiting for the slow wheels of justice to turn??" Another person tweeted. "Probably start FTX 2.0 too."

A representative for Bankman-Fried told Newsweek that he would not be commenting at this time.