FTX sues Sam Bankman-Fried’s parents

bankrupt exchange FTX filed a иск against the parents of the co-founder and former CEO Sam Bankman-Fried (SBF) to recover allegedly looted funds and assets worth “millions of dollars”.

According to the complaint, Joseph Bankman and Barbara Fried used their influence within the company for personal enrichment. As seasoned professors at Stanford Law School, they did not aid the exchange, but “helped loot it,” the filing alleges.

The complaint does not specify the amount of alleged damages, but lists a number of transfers of property. For example, FTX paid $18.9 million for Blue Water, the rights to which were obtained by Bankman and Fried.

The father’s knowledge of tax law and the FTX Group’s tangled corporate structure facilitated a $10 million cash gift to him and his wife from Alameda funds, the filing states.

Additionally, Bankman received millions of dollars from the exchange for participating in Super Bowl advertising. The defendant “knew or should have known about FTX’s precarious financial condition,” the suit states.

The father of SBF was also accused of aiding the misappropriation of assets across the group’s companies through donations and help in concealing a whistleblower’s complaint in September 2019.

Bankman’s annual salary as senior adviser to the FTX Foundation amounted to $200,000. He received $18 million for real estate in the Bahamas and $5.5 million in donations to Stanford University, the complaint states.

Barbara Fried is described in the suit as a “key figure” in SBF’s political efforts. The MTG committee, led by her, coordinates donations to various campaigns and initiatives. The exchange allegedly transferred millions of dollars to the structure at Fried’s direct requests.

Earlier reporters uncovered the role of SBF’s parents in building the FTX business empire.