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. 

      -----Cryptonews AD----->>>  

Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE

  <<<-----Cryptonews AD-----    

 

“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. 

FTX has sued SBF's parents, Joseph Bankman and Barbara Fried, seeking to recover millions of dollars in fraudulently transferred and misappropriated funds, according to court documents filed Monday. FTX Trading paid $18,914,327.82 for Blue Water owned by SBF parents.…

— Wu Blockchain (@WuBlockchain) September 19, 2023

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.

According to Bloomberg, SBF’s father, Stanford University law professor Joe Bankman, was closely involved in FTX’s decision-making, including FTX and FTT launch, the company’s courting of politicians and Bahamian regulators. When the employee came up with legal advice, SBF said…

— Wu Blockchain (@WuBlockchain) September 14, 2023

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. 

Read also: XRP trade volume surges 90%, now it’s time for its trade price 

SBF co-founded exchange FTX sues SBF’s parents 

 

https://bitcoinik.com/sbf-co-founded-exchange-ftx-sues-sbfs-parents/feed/

https://bitcoinik.com/sbf-co-founded-exchange-ftx-sues-sbfs-parents/feed/