Defunct FTX Files Lawsuit Against Former CEO SBF’s Parents EXCHANGE NEWS
SBF’s parents moved millions of dollars from the FTX Group as per the allegations.
The former CEO is now in prison after the court revoked his bail owing to witness tampering.
Former FTX CEO Sam Bankman-Fried’s parents, Allan Joseph Bankman and Barbara Fried, are being sued by the defunct cryptocurrency exchange FTX. During FTX’s early years, Sam Bankman-Fried’s parents unlawfully moved and obtained millions of dollars, which are now being sought by FTX and Alameda Research’s debtors.
Sam Bankman-Fried (SBF) was accused by FTX attorneys earlier this year of paying for his defense using money he sent to his father.
FTX Trading filed a lawsuit against SBF’s parents, on September 18 to recoup losses for transfers made directly and indirectly by the couple out of FTX Trading and its subsidiaries.
Indeed, FTX saw itself as a “family business” and operated for the exclusive advantage of a small handful of insiders. Advisor Bankman contributed significantly to terrible mismanagement. He even aided in the denial of claims against company executives.
Assets to be Returned to Creditors
SBF’s parents, Bankman and Fried, moved millions of dollars from the FTX Group as per the allegations. FTX requests that they be held legally responsible for their actions and that their assets be returned to their creditors.
FTX has filed 12 charges against Bankman and Fried, including fraud, complicity in wrongdoing, and failure to uphold fiduciary obligations. Creditors have also provided sufficient proof of fraudulent transactions made for private gain, political contributions, and the protection of company insiders.
SBF is now in prison after the court revoked his bail owing to witness tampering. The trial is set to begin in early October. Since then, authorities have made many allegations of bond breach against SBF and his parents.