FTX Trading pursues damage claim against SBF’s parents


19 Sep 2023 11:34 AM

Sam Bankman-Fried's parents accused of turning a blind eye to problems at FTX while enriching themselves and family members....

  • Joseph Bankman and Barbara Fried, both tenured Stanford Law School professors, are accused of fraudulent transfers, breaches of fiduciary duties, and unjust enrichment in a lawsuit filed in Delaware District Court.
  • The lawsuit alleges that Bankman used his influence as an advisor to various entities within the FTX Group to enrich himself, his friends, and family.
  • Bankman allegedly received unearned gifts, real property, and lavish corporate perks totaling more than $26 million.
  • Attorneys for Bankman and Fried deny the claims, calling them completely false and accusing FTX attorneys of squandering money that could be paid out to former customers.
  • Bankman is said to have served as a de facto officer, director, and/or manager of FTX Trading, Alameda, Alameda Ltd., and FTX US.
  • The lawsuit also mentions the involvement of FTX's attorney Daniel Friedberg, who was described as Bankman-Fried's "fixer" in a previous filing.
  • Sections of the complaint detailing actions of Friedberg are redacted.
  • The suit alleges that Bankman ignored red flags and made questionable decisions, including granting a collateral-free loan of roughly $478 million to FTX's engineering head.
  • The suit details a $10 million cash transfer to Bankman and a $16.4 million Bahamas residence, both of which are claimed to have been obtained through questionable means.


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