Explosive Lawsuit: FTX Drops Bombshell, Accuses Sam Bankman-Fried's Parents of Misappropriating Millions
FTX takes legal action against Sam Bankman-Fried's parents, alleging embezzlement of company funds for personal gain and pet causes
FTX, the crypto exchange that has filed for bankruptcy, has brought a lawsuit against its founder, Sam Bankman-Fried's parents. The lawsuit alleges that they have unjustly taken several million dollars from the company's funds for their own benefit and personal projects. In an effort to reclaim these funds, FTX seeks to address the fraudulent transfers and misappropriation conducted by Bankman-Fried's parents.
Joe Bankman and Barbara Fried, esteemed law professors at Stanford University, allegedly possessed knowledge of or disregarded alarming signs pointing towards their son and his business associates orchestrating an extensive fraudulent plan, as asserted in the legal complaint.
Legal representatives advocating for Bankman and Fried have released a statement refuting the allegations made in the lawsuits, deeming them entirely baseless and denoting them as a perilous endeavor to intimidate Joe and Barbara while undermining the integrity of the jury process, as their child's trial approaches within a few days.
FTX filed for bankruptcy in November of last year after concerns about its financial stability caused turmoil in the cryptocurrency market and resulted in a significant withdrawal of customer funds. Currently, the company is under investigation by federal authorities for what has been labeled as one of the largest financial frauds in US history. The company's 31-year-old founder, Bankman-Fried, has entered a plea of not guilty to numerous charges of fraud and conspiracy and is set to stand trial on October 3rd.
FTX founder Sam Bankman-Fried leaves Federal court, Wednesday, July 26, 2023, in New York.
Mary Altaffer/AP
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The lawsuit, filed on Monday, alleges that Bankman and Fried engaged in discussions with their son regarding the transfer of a $10 million cash gift and a $16.4 million luxury property in the Bahamas, despite the company's impending insolvency.
Currently, FTX is under the leadership of John Ray III, a corporate restructuring specialist who previously testified that the FTX case involves traditional embezzlement committed by inexperienced business individuals.
This story is developing and will be updated.
