FTX sues Sam Bankman-Fried's parents to claw back funds
Despite "knowing or blatantly ignoring" that FTX was insolvent or near insolvency, Allan Joseph Bankman and Barbara Fried discussed with their son, CEO Sam Bankman-Fried (pictured), the transfer to them of a $10 million cash gift and a $16.4 million luxury property in the Bahamas, managers of the bankrupt company said this week in a court filing. The pair also "pushed for tens of millions of dollars in political and charitable contributions," the filing says.
Victor J. Blue/Bloomberg
The managers of the bankrupt crypto exchange FTX sued the parents of co-founder and former Chief Executive Officer Sam Bankman-Fried to "recover millions of dollars in fraudulently transferred and misappropriated funds."
Allan Joseph Bankman and Barbara Fried allegedly exploited their access and influence within FTX to "enrich themselves, directly and indirectly, by millions of dollars," at the expense of the debtors and creditors, the company said in a court filing Monday.
Bankman-Fried's FTX empire fell apart last November in what prosecutors say is one of the largest financial frauds in U.S. history. FTX owed customers approximately $8.7 billion when it filed for bankruptcy, and about $7 billion in liquid assets have been recovered so far.