2024-01-17 16:31:05
Joseph Bankman and Barbara Fried are the parents of Sam Bankman-Fried, the founder of the collapsed FTX crypto exchange they asked the court to dismiss the lawsuit filed once morest them by the bankrupt FTX. This is to recover funds allegedly fraudulently obtained and transferred. FTX took steps in September 2023 to recover many millions of dollars from Bankman and Fried. Less than two months later, their son, Sam Bankman-Fried, was found guilty of all seven counts in the FTX case. The sentencing is expected in March.
Sam Bankman-Fried’s parents don’t leave the matter at that
Bankman and Fried, both professors at Stanford Law School, argued that they had no fiduciary relationship with FTX. There were no “directors, officers or managers”. And even if there was some kind of relationship with FTX, that’s not enough of a basis for FTX’s filing, according to the Jan. 15 court filing. According to the filing it is not enough for FTX to plead that the parents “knew or should have known” anything regarding their son’s case. Instead, they argued, FTX should have presented specific facts that proved the parents “knew that certain actions would result in a breach of fiduciary duty.”
In the statement of claim dated September 20, 2023, FTX did not state the total amount that Bankman and Fried were allowed to forfeit. But he communicated certain items. Bankman was paid $200,000 a year for his role as a senior adviser to the FTX Foundation and more than $18 million for a property in the Bahamas. An additional 5.5 million dollars from the FTX Group’s donations also went to Stanford University. According to the university, this will be returned anyway.
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