2023-09-19 15:14:47
Published on September 19, 2023 at 5:14 p.m. Updated on September 19, 2023 at 5:55 p.m.
A luxurious property worth $16.4 million in the Bahamas, several million dollars in cash… Allan Joseph Bankman and Barbara Fried have benefited greatly from the past success of the FTX platform, founded by their son Sam Bankman Friedman, known as “SBF”.
The parents of the ousted boss are now the subject of a complaint filed by the managers of the bankrupt company, “to recover millions of dollars in fraudulently transferred and misappropriated funds”, indicates the complaint made public Monday.
This notably demands the restitution of any property given or payment made by FTX to the parents of its founder, as well as damages for their “conscious, deliberate, disorderly and malicious conduct”.
Gifts and donations
According to Bloomberg, not only did the couple receive various gifts, but they also allegedly “lobbyed for tens of millions of dollars in political and charitable contributions.” The mother of the ex-crypto star is said to have repeatedly asked the company to pay large sums of money to the Mind the Gap organization, a political action committee that she herself had even founded.
Joseph Bankman reportedly received an annual salary of $200,000 as an advisor to the FTX Foundation.
All while knowing or “pretending to be unaware” that the platform was insolvent or close to being so. Allan Joseph Bankman and Barbara Fried are both renowned lawyers, having taught law at the prestigious Stanford University.
“Bankman’s mastery of tax law and unique understanding of FTX’s confusing corporate structure allowed him to facilitate the transfer of a cash gift totaling $10 million to himself and Fried,” we can read in the file.
Allan Bankman and Barbara Fried are thus suspected of having mobilized their knowledge and experience, not to help the platform and make it more solid, but to plunder it in order to enrich themselves. Above all, the solid knowledge they instilled in their son allowed him to build the FTX empire, then to cheat investors by embezzling their money.
Currently incarcerated in Brooklyn prison awaiting trial, their son, facing 8 charges, faces up to 115 years in prison.
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