Lawyers for FTX Trading have filed a lawsuit accusing the parents of its founder Sam Bankman-Fried of exploiting their influence over their son to siphon...
DOVER, Del. — Lawyers for FTX Trading have filed a lawsuit accusing the parents of its founder Sam Bankman-Fried of exploiting their influence over their son to siphon millions of dollars from the company, while spending lavishly on a luxury home in the Bahamas and funneling contributions to their “pet causes” and Stanford University.
Several other former FTX executives have pleaded guilty to fraud and conspiracy charges and are cooperating with investigators.The lawsuit alleges that Bankman, a Stanford University law professor and expert in tax law, and Fried, a retired Stanford law professor, participated in the wrongdoing that led to the collapse of FTX and resulted in both criminal and civil investigations.
Attorneys for Bankman and Fried issued a statement denying the allegation and taking aim at John Ray III, who was named CEO when FTX sought bankruptcy protection and is charged with trying to clean up the mess left by its collapse. The complaint also states that more than $18.9 million in FTX funds was used to purchase a 30,000-square-foot luxury residence in the Bahamas for Bankman and Fried, who also benefited from more than $90,000 in FTX-funded expenses to furnish and maintain the property.
“Fried focused heavily on masking Bankman-Fried’s identity as a political donor. She regularly raised this issue in email communications with Bankman-Fried and advised him on avoidance of such disclosure,” according to the lawsuit.
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