FTX Founder Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, are seeking the dismissal of a lawsuit filed against them by FTX.
Key Takeaways
- FTX Founder Sam Bankman-Fried’s parents aim to dismiss a lawsuit filed against them by FTX, denying involvement in fraudulent transfers and breaches of fiduciary duties.
- Lawyers for Joseph Bankman and Barbara Fried argue that the familial relationship is not actionable, emphasizing that neither parent held an executive role in the debtor entities.
- The lawsuit alleges that the parents exploited their FTX connection for personal gain and made substantial political and charitable contributions to enhance their professional and social status.
- Bankman and Fried’s attorneys dismiss the significance of these allegations, stating that they do not establish any legal wrongdoing or benefit received by the parents.
FTX Lawsuit Against Sam Bankman-Fried’s Parents
Parents of FTX Founder Sam Bankman-Fried, Joseph Bankman, and Barbara Fried, are seeking the dismissal of a lawsuit brought against them by FTX. The suit, initiated in September 2023, alleges their involvement in fraudulent transfers and breaches of fiduciary duties.
In response, lawyers for Bankman and Fried argue that the familial relationship with Sam Bankman-Fried is “not actionable,” emphasizing that neither parent held an executive role in the entities involved.
The legal defense, outlined in a filing dated Monday, challenges the notion that Bankman and Fried exploited their connection to FTX. The attorneys assert that the plaintiffs sought to capitalize on the fact that Sam Bankman-Fried was a founder and executive of the debtor entities, a relationship they deem non-actionable.
Allegations of Exploitation and Contributions
The September 2023 complaint alleges that, leveraging their association with FTX, Bankman and Fried enriched themselves at the expense of debtors in Chapter 11 cases. It also claims that the parents made significant political and charitable contributions, including to Stanford University, to enhance their professional and social standing.
Read More: Sam Bankman-Fried Pleads Not Guilty; Court Sets Trial Date on 2nd October, 2023
Additionally, the FTX lawsuit suggests that Bankman described Alameda as a “family business” and used funds from debtors to purchase a luxury property in The Bahamas.
To Conclude
FTX Founder Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, are actively seeking the dismissal of a lawsuit filed against them by FTX.
The legal defense centers on discrediting allegations of fraudulent transfers, breaches of fiduciary duties, and exploitation of their familial relationship with Sam Bankman-Fried.
