- FTX sued Sam Bankman-Fried’s parents.
- Founder and former CEO Sam Bankman-Fried fraudulently gifted millions of dollars to his parents, according to the collapsed cryptocurrency exchange’s bankruptcy estate.
- FTX seeks to recover $10 million in cash gifts and $16.4 million in property in the Bahamas.
Bankrupt cryptocurrency exchange FTX has sued Allan Joseph Bankman and Barbara Fried, the parents of former FTX CEO Sam Bankman-Fried.
According to details filed in court, FTX aims to recover millions of dollars fraudulently gifted to Bankman-Fried’s parents by the collapsed cryptocurrency exchange.
FTX aims to recover $26.4 million.
According to the FTX bankruptcy estate, SBF’s parents used their influence within the company to obtain a $10 million cash gift and $16.4 million in luxury real estate located in the Bahamas. These transactions occurred even though the parties involved were aware of the possible insolvency of the cryptocurrency exchange.
FTX said in a filing with the U.S. Bankruptcy Court for the District of Delaware that it wants to recover the misappropriated funds. The exchange’s complaint also includes email exchanges between Bankman and FTX US over the $200,000 annual salary payment. According to a former Stanford University professor, his annual salary was ‘estimated’ at $1 million.
In part of the email cited by CNBC, Bankman told his son:Geez, Sam I don’t know what to say here. This is my first time hearing an annual salary of 200,000! Put Barbara here..”
Conor Grogan, Head of Product at Coinbase, emphasized X:
SBF’s father didn’t like the pay at FTX US, so he sent an email to SBF asking for more money, and pulled out the phrase “I’m talking to my mom” and connected SBF’s mom to the email thread. pic.twitter.com/jJaHFqpI7Z
— Connor (@jconorgrogan) September 19, 2023
Following this exchange, $10 million was taken from Alameda and $16.4 million worth of assets were gifted to the former FTX CEO’s parents.
Bankman-Fried faces a criminal trial scheduled to begin Oct. 3 and was recently sent to prison after federal prosecutors detained him on witness tampering charges. The disgraced FTX founder is facing multiple charges of wire transfer and securities fraud.