SBF co-founded exchange FTX sues SBF’s parents
The FTX bankruptcy team sued SBF’s parents Joseph Bankman and Barbara Fried.
FTX is a collapsed crypto exchange that was the top-ranked crypto exchange by trade volume until Nov 2022. In the first week of Nov 2022, the exchange collapsed badly following bad reports about the financial position of the company. Allegedly FTX co-founder & ex-CEO Sam Bankman-Fried (SBF) was the main culprit who misused the customer’s funds for personal benefits.
On 19 Sep 2023, Coindesk reported that the FTX bankruptcy team sued SBF’s parents Joseph Bankman and Barbara Fried.
The court filing showed that FTX asked the court to order the SBF’s parents to return all the funds they received for any kind of purpose from the FTX exchange.
“FTX Trading paid $18,914,327.82, inclusive of taxes, fees, and costs, for Blue Water, to which Bankman and Fried received the title, as well as various expenses related to Blue Water totaling more than $90,000,” the filing said.
The court documents mentioned several types of information related to the financial transactions between SBF’s parents & FTX exchange.
Just a few days back a report by Bloomberg confirmed that SBF’s parents used their 3 decades of experience to establish & successfully launch the FTX exchange.
The Court filing mentioned that SBF’s parents used their expertise & links for FTX exchange only for personal benefits, not to help their son’s business.
The FTX team failed to mention the particular amount that they want back but in particular, they mentioned more than $18 million for the property in the Bahamas and $5.5 million in FTX Group donations to Stanford University and Bankman received $0.2 million per year as an advisor for the FTX foundation.
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