FTX sues founder Sam Bankman-Fried's parents
economictimes.indiatimes.comFTX on Monday sued the parents of founder Sam Bankman-Fried, saying that Stanford professors Joseph Bankman and Barbara Fried used the company to enrich themselves at the expense of FTX's customers. FTX, now being led by turnaround specialist John Ray, said that company founder Sam Bankman-Fried ran FTX as a «family business» and misappropriated billions in customer funds for the benefit of a small circle of insiders, including his parents.
Sam Bankman-Fried has pleaded not guilty to charges that he defrauded FTX customers by using their funds to prop up his own risky investments. He is currently jailed ahead of a trial scheduled to begin October 3. Other former FTX executives have pleaded guilty to criminal charges.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Digital Marketing and AnalyticsVisitIndian School of BusinessISB Product ManagementVisitIIM LucknowIIML Executive Programme in Data ScienceVisitIndian School of BusinessISB Professional Certificate in Digital MarketingVisit Bankman and Fried's attorneys, Sean Hecker and Michael Tremonte, said in a joint statement that FTX's claims were «completely false» and that the new lawsuit was a waste of funds that could be returned to FTX customers.
«This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child's trial begins,» Hecker and Tremonte said.
FTX's lawsuit alleges that Bankman and Fried accepted a $10-million cash gift and a $16.4-million luxury property in the Bahamas from FTX, even as the company teetered on the brink of collapse. Bankman and Fried also pushed FTX to make tens of millions of dollars in charitable contributions, including
