FTX Sued Sam Bankman-Fried's Parents
FTX's bankruptcy case is taking a new turn. The company has sued the parents of the former CEO to get the misappropriated funds back.
New court filings shed light on FTX's claims against the parents of a disgraced businessman. The company is asking Joseph Bankman and Barbara Fried to return any property or payments they illegally received from FTX before the bankruptcy.
FTX is also asking the court to order the Bankman-Fried couple to pay fines for malicious conduct. The FTX Trading division of FTX previously paid $18,914,327, 82 dollars for Blue Water, owned by Bankman and Fried, as well as Blue Water's expenses of about $90,000. In addition, Joseph Bankman understood the convoluted structure of FTX, which helped him effectuate the transfer of $10 million to himself and his wife from Alameda's funds.
FTX believes that Bankman knew about the poor financial condition of his son's company, which did not prevent him from profiting. Current management also accuses Bankman of helping FTX insiders spend the company's money. Joseph was also part of the group that tried to sell FTX to Binance. Meanwhile, Barbara Fried was responsible for the very political donations for which her son was indicted.
The filing further reveals information about how the businessman's parents spent the embezzled funds. For example, they could spend $1,200 per night. The total amount of embezzled funds is not specified. However, it is also known that Joseph received a salary of $ 200,000 a year, $18 million for real estate in the Bahamas and $5.5 million in donations to Stanford University