2023-09-19 15:18:04
Insolvent FTX Derivatives Exchange Takes Legal Action Against Joseph Bankman and Barbara Fried, parents of the cryptocurrency company’s founder and former CEO, Sam Bankman-Fried (SBF).
The Allegations in the FTX Case
In a formal presentation In court, the trading platform has accused Bankman and Fried, who hold prestigious positions as law professors, of fraud. According to the filing, the exchange’s goal is to recover funds that were allegedly fraudulently moved and misappropriated.
The exchange’s decision to sue the parents of its founder underlines the seriousness of the alleged financial irregularities and has raised serious concerns among FTX stakeholders, who have been forced to explore all available avenues to recover these supposedly ill-gotten funds.
Additionally, the court document revealed that both parties, who have enjoyed distinguished careers in academia, were involved in the misallocation of substantial sums of money, which were entrusted to the exchange for safekeeping and legitimate business purposes.
Bankman’s experience as an expert in tax law and his close relationship with his son allowed him to be an integral part of the exchange, while making several decisions in its favor. The accusations also indicate that he used his insider status to divert some of the company’s money to his personal account.
Despite knowing the challenges facing the insolvent exchange, Bankman and Fried obtained regarding $10 million in cash from SBF and a luxury property in the Bahamas worth regarding $16.4 million. The duo also lobbied for tens of millions of dollars in political and charitable contributions, in order to increase their financial and social status at the exchange’s expense.
Therefore, FTX asks the court in its filing to force both parents to return all funds they have received, whether in the form of property or cash gifts that may have been given to them through the company.
More Problems For Bankman-fried And FTX
Recall that the 31-year-old businessman, who is already facing charges of fraud and mismanagement of funds, was accused of conspiring to pay a sum of approximately $40 million to Chinese government officials. YesThe main reason for doing so is believed to have been to convince Chinese authorities to unfreeze Alameda Research’s accounts, which contain more than $1 billion in assets.
For their part, prosecutors have vehemently opposed the dismissal of charges once morest the embattled founder, stating that the criminal charges brought once morest him carry significant weight and should not be dismissed on procedural grounds.
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