The parents of Sam Bankman-Fried, the founder of the crypto exchange FTX who is suspected of fraud, are now also in the crosshairs of the court. Managers of the now bankrupt company accuse the couple of fraudulently transferring millions of dollars. That ultimately led to FTX’s demise, the complaint says.
A few years ago, the crypto exchange was the largest trading platform for crypto coins in the world. As of 2021, she had an estimated $15 billion in assets. But in November last year, FTX went bankrupt after many customers suddenly tried to withdraw their money, but the platform turned out to have insufficient funds.
The court suspects founder Sam Bankman-Fried of having committed fraud by transferring funds to the Alameda investment fund, of which he is also the founder. The 31-year-old businessman had to go back to jail last month despite paying bail, pending his trial that starts next month. He denies all accusations.
Stanford University
Now his parents – Allan Joseph Bankman and Barbara Fried, both professors at the renowned Stanford University – are also accused of using their access and influence within FTX to enrich themselves, “directly and indirectly”.
For example, they are said to have received a cash gift of $10 million from Alameda, as well as real estate worth $16.4 million in the Bahamas. In the indictment, father Bankman is also accused of ignoring several alarm signals, while as a financial expert he should have been well informed.
The parents’ lawyers deny all allegations and speak of “a dangerous attempt at intimidation”.
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