Debtors of the defunct cryptocurrency exchange FTX have filed a lawsuit against FTX founder Sam Bankman-Fried's (SBF) parents.
Sam Bankman-Fried's Parents Are Being Sued
Debtors of the defunct cryptocurrency exchange FTX have filed a lawsuit against FTX founder Sam Bankman-Fried's (SBF) parents, accusing them of misappropriating millions of dollars through their role in the exchange. Joseph Bankman and Barbara Fried, according to the plaintiffs, used their position inside FTX to profit themselves at the expense of FTX's debtors. They contend that, contrary to SBF's statements, SBF's parents were actively involved in the firm, with SBF describing the FTX Group as a “family business.”
According to the court filing, Allan Joseph Bankman and his wife, Barbara Fried, are accused of enriching themselves with money that their son had access to during his time at FTX. The allegations further claim that Joseph Bankman was a "de facto officer" at FTX Group, adding to the complexity of the case.
FTX's lawsuit also alleges that the defendants failed to investigate a whistleblower complaint that could have potentially saved the exchange from its eventual collapse. The exchange is seeking to hold the parents accountable for their actions and recover the funds that were allegedly taken from FTX.
The lawsuit attempts to hold them accountable for their acts and to recover assets on behalf of creditors. Bankman and Fried's attorneys have disputed the charges, calling them bogus and an attempt to derail the trial. SBF is facing various allegations linked to fraudulent operations, while FTX filed for bankruptcy in 2022.
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