Former President Donald Trump has posted a $175 million bond in his New York civil fraud case, putting a halt to the collection of the more than $454 million he owes and preventing the state from seizing his assets while he appeals the judgment. This move comes after a New York appellate court granted Trump 10 days to provide the required bond, which was reduced from the initial amount.
The bond serves as a placeholder, ensuring payment if the judgment is upheld. If Trump succeeds in his appeal, he will not be obligated to pay the state anything and will receive back the bond amount. Trump's legal team expressed confidence in overturning the verdict and vindicating his rights.
The lawsuit, brought by New York Attorney General Letitia James, alleges that Trump misrepresented his wealth to secure loans and deals. Trump denies any wrongdoing, claiming that the financial statements undervalued his assets and were not taken at face value by lenders and insurers.
The appellate court is set to hear arguments in September, with a specific date yet to be determined. The legal proceedings coincide with the final weeks of the presidential race, adding a political dimension to the case.
Trump secured the bond through Knight Specialty Insurance, using a combination of cash and assets as collateral. The chairman of the insurance company emphasized their willingness to provide bonds for those in need, highlighting their support for Trump's appeal.
In addition to the New York case, Trump has faced other legal challenges, including a defamation lawsuit and legal fees from unsuccessful lawsuits. Despite recent financial obligations, Trump's ownership stake in his social media company, Trump Media & Technology Group, could potentially generate significant cash in the future, albeit subject to a lock-up provision.
