Parents of Sam Bankman-Fried Sued by FTX Estate Over Allegedly Siphoning Funds From Crypto Exchange: Report
The parental guardians of former FTX CEO Sam Bankman-Fried are reportedly being sued by the crypto exchange’s bankruptcy estate for allegedly misappropriating funds.
According to a new article from the Financial Times, Joseph Bankman and Barbara Fried are being sued by the FTX estate over allegedly siphoning funds from the now-bankrupt exchange.
Says prosecutors,
“As early as 2018, Bankman described Alameda as a ‘family business’ — a phrase he repeatedly used to refer to the FTX Group.”
However, Bankman and Fried’s lawyers say the allegation is “a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins.”
The allegations are the latest that suggest illegal payments were laundered through the former crypto exchange.
Earlier this month, a court filing showed that Bankman-Fried began to collect millions of dollars in cash payments from FTX as early as January 2022 until October of the same year, a month before the exchange imploded.
The documents also reveal that the former FTX CEO received cash payments to the tune of $200 million on two separate occasions.
Court documents also show that FTX shelled out $2.513 million to pay for the yacht of Sam Trabucco, the former co-CEO of FTX’s trading arm Alameda Research. The transaction happened less than six months before Trabucco left the firm.
Meanwhile, Caroline Ellison, who is also a former co-CEO of Alameda, received $3.5 million in cash payments in September 2022.
Others who collected millions of dollars in cash payments from the bankrupt crypto exchange include former FTX executives Gary Wang, Ryan Salame, Nishad Singh and Jonathan Cheesman.
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