The FTX Debtors have initiated legal proceedings against the parents of the disgraced FTX founder, Sam Bankman-Fried (SBF), with the aim of recovering funds that were fraudulently transferred and misappropriated.
“Bankman-Fried’s parents, Bankman and Fried exploited their access and influence within the FTX enterprise to enrich themselves,” the filing stated.
SBF Parents Accused of Exploiting Position Within FTX
A court filing dated September 18 reveals that the FTX debtors have commenced legal action against SBF’s parents. The debtors intend to reclaim substantial sums of money.
““This action seeks to recover millions of dollars in fraudulently transferred and misappropriated funds from the parents of FTX Founder Samuel Bankman-Fried.”
The court document refers to SBF’s mother as “Fried,” and Allan Joseph Bankman as “Bankman.”
The claim alleges that Bankman and Fried purposefully exploited their access to the defunct crypto exchange for their personal gain. It further claims that it came at the detriment of the debtors involved in these Chapter 11 Cases.
It goes on to assert that Bankman leveraged his extensive background as a tax law expert and Stanford law professor to secure a prominent role at FTX.
The document elaborates that Bankman initially began as a pro-bono contributor within the organization. However, he gradually assumed the responsibilities of a “de facto” officer, strategically advising and overseeing FTX operations.
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