New Report: Sam Bankman-Fried's Father Played a Key Role in FTX's Cryptocurrency and Legal Defense
Sam Bankman-Fried's father, Joe Bankman, played a significant role in advising FTX, the cryptocurrency exchange that faced controversy leading to its downfall.
Joe Bankman, a law professor at Stanford University, had a more involved role in FTX operations than previously known, according to a recent report from Insider.
One notable instance of Bankman's involvement was his appearance in FTX's Super Bowl ad alongside Larry David, where he dressed as a founding father in a powdered wig.
Shortly after the ad aired, Bankman joined his son's company as an employee, the report said, adding that former staff members from Alameda, FTX's sister hedge fund, disclosed that Bankman also assisted in drafting early legal documents.
Furthermore, invoices from the company's law firm listed Bankman as an attendee in meetings, indicating his participation in the development of marketing materials for FTX's own cryptocurrency, FTT.
This is particularly noteworthy as FTT played a major role in the collapse of the crypto exchange.
The downfall of FTX started after it was revealed that a significant portion of Alameda's $14.6 billion in assets consisted of the FTT token.
Following the revelation, customers rushed to withdraw their deposits, and FTX struggled to meet the demand due to extravagant spending by its executives.
As a result, the company filed for bankruptcy nine days later.
According to one former employee, Bankman-Fried frequently consulted his father, with SBF often stating that he needed to "call Joe" first when faced with legal suggestions from employees.
In a late March report, Forbes revealed that Bankman has been funding his son's legal defense after receiving a $10 million gift from company funds.
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