FTX files lawsuit against SBF’s parents, allege $30 mln deception


19 Sep 2023 1:00 PM

A new lawsuit, filed by FTX, claims that Allan Bankman and Barbara Fried manipulated their positions, diverting funds from the company....

  • FTX has filed a lawsuit against the parents of its founder, Sam Bankman-Fried, accusing them of fraudulent transfer, breach of fiduciary duty, unjust enrichment, and other causes of action.
  • Allan Bankman and Barbara Fried allegedly used their insider status within FTX to amass personal wealth while the company faced financial turmoil and eventually collapsed.
  • The lawsuit claims that Bankman committed breach of fiduciary duty and aided and abetted fraud, while Fried was accused of unjust enrichment and aiding and abetting fraud through her political fundraising activities.
  • The complaint suggests that Bankman and Fried received substantial benefits at FTX's expense, including cash gifts, ownership of a luxurious property, and donations to Stanford University.
  • Allan Bankman allegedly ignored red flags related to the improper use of customer funds and facilitated the redirection of donations to Stanford University.
  • Barbara Fried allegedly pressured FTX executives to make political donations that violated campaign finance laws.
  • FTX is seeking to recover the alleged improper transfers and benefits received by Bankman and Fried.

The article describes allegations of fraudulent activities and misconduct by the parents of FTX's founder. The sentiment is negative as it highlights the misuse of insider status and financial impropriety.

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You May Ask

Who has FTX filed a lawsuit against?What are the allegations against Allan Bankman and Barbara Fried?What benefits did Bankman and Fried allegedly receive at FTX's expense?What concerns has John Deaton raised about the prosecution of Sam Bankman-Fried?

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