Trump Agrees to Abide by New Limitations on $175 Million Bond in New York Civil Fraud Lawsuit

Former President Donald Trump has agreed to additional restrictions on the $175 million bond in his New York civil fraud case, resolving concerns raised by the state attorney general regarding the security of the funds.

The bond, issued by Knight Specialty Insurance, is meant to ensure Trump’s compliance with a $454.2 million judgment obtained by state Attorney General Letitia James in case he is not successful in an appeal.

Justice Arthur Engoron imposed the penalty after finding that Trump, the Republican candidate in the 2024 election, had inflated his net worth and real estate assets to deceive banks and insurers.

James had challenged the bond, arguing that Trump still had access to the collateral account pledged to the insurer.

During a hearing, Trump’s lawyers and Knight agreed that the funds would remain as cash, Knight would have exclusive control of the account, and monthly statements would be provided to James to ensure the security of the funds.

The agreement was reached after Engoron questioned the security of the collateral and expressed concerns about potential violations of the agreement.

Knight is owned by billionaire Trump supporter Don Hankey, who had previously stated that he did not anticipate any issues with the bond.

Trump defended the bond outside the courtroom, stating that he had put up the cash and that the bonding company would be reliable.

James had argued that Trump’s trust still controlled the account and questioned Knight’s financial arrangements.

Trump was initially required to guarantee the entire verdict while appealing, but a state appeals court allowed him to post a smaller bond.

With the attention now on Trump’s criminal trial, Engoron noted the difference in courtroom attendance from the civil fraud trial.

“Where is everyone?” he joked at the beginning of the hearing.