Lawyers for Sam Bankman-Fried’s parents reject FTX’s claims

Legal representatives of the parents of former FTX CEO Sam Bankman-Fried described the exchange’s claims against their clients as unlawful. The Block reports.

Commentary to the publication was provided by lawyers Sean Hecker and Michael Tremonte, who represent Joseph Bankman and Barbara Fried, respectively.

“This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury-trial process just days before the start of the trial against their child. These statements are completely false,” the lawyers said.

On the eve of the bankruptcy proceedings at FTX filed a lawsuit against Bankman and Fried. The exchange intends to recover allegedly misappropriated funds and assets worth millions of dollars to be added to the overall bankruptcy estate.

According to the complaint, the defendants used their influence within the company for personal enrichment. The complaint does not state the total amount of claims, but mentions real estate owned by the parents in the Bahamas worth $18 million, donations to Stanford University amounting to $5.5 million, and other payments and transfers of ownership.

“Mr. Ray and his vast team of lawyers, who collectively receive countless millions of dollars in fees, have provided relatively little restitution to FTX’s clients, and they know this is not true,” said representatives of Bankman and Fried.

In a March presentation, the exchange estimated the total shortfall to cover creditor claims at $8.7 billion, of which around $1.6 billion was in Bitcoin. In June, the new management of FTX said that returned $7 billion in liquid assets.

Earlier, journalists revealed the role of the Bankman-Frieds in building the FTX business empire.