Allan Joseph Bankman and his wife Barbara Fried syphoned millions of dollars out of FTX for their own personal benefit and their 'pet causes', it is alleged. The pair deny the claims.
The parents of a man who founded a cryptocurrency exchange which later went bankrupt are being sued by the company, alleging the pair syphoned off millions of dollars from FTX's funds to enrich themselves.
Allan Joseph Bankman and his wife Barbara Fried are accused of helping to set up a scheme where their sonfunds to buy a luxury home in the Bahamas, even as the firm teetered on the brink of collapse, it is claimed. Bankman, a Stanford law professor and tax law expert, and Fried, a retired Stanford law professor, also pushed the exchange to make tens of millions of dollars in charitable contributions to their"pet causes" and the university, FTX said.The company alleged Bankman-Fried ran it as a"family business" and misappropriated billions of dollars in customer funds to benefit a small circle of insiders, including his parents.
However, Bankman-Fried has insisted his parents"weren't involved in any of the relevant parts" of the business. FTX, which filed bankruptcy last November owing $8.7bn to its customers with Bankman-Fried resigning as chief executive, is trying to recover damages allegedly caused by the couple.
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