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The parents of Sam Bankman-Fried, the founder of the now-bankrupt digital asset trading platform FTX, Joseph Bankman and Barbara Fried, want a lawsuit against them dismissed.&nbsp;
Bankman and Fried said the lawsuit seeks to “capitalize on the sheer fact” that they are the parents of the disgraced crypto entrepreneur.
<h3 style="color: #252525" id="span-style-font-weight-400-color-252525-lawsuit-against-ftx-founder-s-parents-span">Lawsuit Against FTX Founder’s Parents</h3>
The parents of <a href="https://thecoinrise.com/sbf-says-he-believes-ftx-could-be-saved-during-his-trial/" rel="noopener noreferrer nofollow">Bankman-Fried, also known as SBF</a>, were dragged into the FTX lawsuit with a filing claiming that the two exploited their access and influence in the company to make more money at the <a href="https://thecoinrise.com/ftx-bankruptcy-resolution-may-take-longer-than-expected-legal-experts-says/" rel="noopener noreferrer nofollow">expense of the creditors of the exchange</a>.
<h3 style="color: #252525" id="span-style-font-weight-400-color-252525-relationship-is-not-actionable-span">‘Relationship is not Actionable’&nbsp;</h3>
Bankman and Fried <a href="https://www.courtlistener.com/docket/67806768/20/ftx-trading-ltd-adversary-proceeding/" rel="noopener noreferrer nofollow">pointed out</a> that most of the claims are based on the fact that they are the parents of the disgraced crypto entrepreneur.&nbsp;
“That relationship is not actionable,” stated the lawyers from Montgomery McCracken Walker &amp; Rhoads.
<h2 style="color: #252525" id="span-style-font-weight-400-color-252525-bankman-had-a-fiduciary-relationship-with-ftx-span">Bankman had a Fiduciary Relationship with FTX</h2>
The lawyers have rejected the statement that Bankman had a fiduciary relationship with FTX while serving as a defacto director of the trading platform. They said that even if there was a fiduciary relationship, the plaintiffs have failed to plausibly allege a breach.
“Mere conclusory allegations are insufficient to state a plausible claim for relief. The complaint must contain sufficient facts allowing the court to draw the reasonable inference that the defendant is liable for the misconduct alleged,” argued the lawyers.
<h3 style="color: #252525" id="span-style-font-weight-400-color-252525-similar-arguments-from-sbf-s-mother-span">Similar Arguments from SBF’s Mother</h3>
Similar arguments were presented by Bankman-Fried’s mother, Barbara Fried, who stated that there was a failure to allege an underlying breach and actual knowledge of any misconduct, while adding:
“The claims against Mr. Bankman and Ms. Fried should be dismissed pursuant to Federal Rule of Civil Procedure 12(b)(6) and Federal Rule of Bankruptcy Procedure 7012(b) for failure to state a claim.”
FTX has been trying to recover funds worth millions of dollars in cash and gifts from the parents of SBF. Recently, the firm has been making efforts to <a href="https://thecoinrise.com/ftx-bankruptcy-estate-to-sell-sbfs-luxury-bahamian-properties/" rel="noopener noreferrer nofollow">liquidate a substantial portfolio of properties</a> located in the Bahamas. 
The post <a href="https://thecoinrise.com/ftx-founders-parents-want-lawsuit-against-them-dismissed/" rel="noopener noreferrer nofollow">FTX Founder’s Parents Want Lawsuit Against Them Dismissed</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

FTX Founder’s Parents Want Lawsuit Against Them Dismissed

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