FTX Files Lawsuit Against Sam Bankman-Fried’s Parents Over Millions
The troubled crypto exchange FTX has filed a lawsuit against Allan Joseph Bankman and Barbara Fried, parents of Sam Bankman-Fried.
FTX, along with Alameda Research, aims to recover millions of dollars allegedly transferred fraudulently and misappropriated by Sam Bankman-Fried’s parents during FTX’s early years. FTX lawyers also accused Sam Bankman-Fried of using gifted money for his legal defense.
In a court filing on September 18, FTX Trading seeks compensation from Allan Joseph Bankman and Barbara Fried for direct and indirect transfers from FTX and its affiliated companies. They allegedly enriched themselves, knowingly at the expense of FTX’s Chapter 11 Cases and creditors.
FTX Group was described as a “family business,” fostering a culture of misrepresentation and mismanagement, with Bankman playing a key role. Sam Bankman-Fried’s parents allegedly diverted millions from FTX Group for personal gain. FTX urges the court to hold them accountable and recover assets for creditors.
FTX has charged Bankman and Fried with 12 counts, including fraud and aiding breaches of trust. They’ve provided evidence of fraudulent transfers for personal gain, political donations, and insider protection.
Sam Bankman-Fried’s trial is set to resume in early October. He’s in jail after bail revocation due to witness tampering. Pretrial bail and dietary preferences have been denied. The trial is pivotal as authorities tighten crypto crime enforcement.