Bloomberg News reports that the filing, redacted in sections, has asked the court to extend to the FTX estate for any damage and return any property given. It also asked to return any payment made to the parents.
The filling
The bankrupt crypto exchange FTX has filed a lawsuit against founder and former chief executive officer Sam Bankman Fried’s parents, Barbara and Joseph Fried. This move aims at recovering millions of dollars fraudulently transferred and misappropriated. The company’s Monday court filing revealed the same.
What was the alleged filing?
As per one example in the filing, FTX Trading paid $18,914,327.82, which includes fees, taxes, and costs for Blue Water for receiving Bankman and Fried the title. Aside from the above, some expenses were related to Blue Water, which amounted to more than $90,000.
There were allegations in the filing that the messy corporate structure of the FTX Group and the company’s command over tax laws made it easier to facilitate the transfer of cash gifts that amounted to a total of $10 million in his name and to Alameda Ltd funds.
Even worse is that Bankman and Fried employed their experience of decades as law professors and posing to be legitimate. However, instead of helping the FTX Group, it plundered their assets to make themselves richer.
Therefore, the filing indicated that Bankman should have known, and perhaps already knew, about the financial condition of FTX Group, even though he moonlighted as an actor at the Super Bowl, during which millions of dollars were extracted from the FTX Group.Bloomberg News revealed the same.
Bankman and Fried are professors teaching at Stanford Law School. The complaint also included that Bankman had helped many insiders from the FTX group in dissipating funds on donations and concealed a whistleblower complaint that arose in September 2019.
According to the filing, Barbara Fried was the so-called “point person” regarding SBF’s political contribution strategies. She also used her influence and access to benefit Mind the Gap or MTG. She co-founded MTG, an independent political action committee, in 2018. It is an expenditure-only body where she worked as the President and Chair. MTG received tens of millions of dollars.
What was the amount of misappropriated funds?
The filing did not mention the total misappropriated amount. However, it mentioned some specific line items. Bankman used to receive a salary of $200,000 annually for taking on the role of a senior adviser to the FTX foundation.
Bankman’s name was also included in the Binance Letter of Intent, along with an invitation for a Binance meeting scheduled for November 9, 2022. On November 10, 2022, the day before the filing of bankruptcy Chapter 11, Bankman was supposed to meet the Prime Minister of The Bahamas.
