SBF’s Parents Call for Dismissal of FTX Lawsuit:
- Joseph Bankman and Barbara Fried, parents of Sam Bankman-Fried, are seeking the dismissal of a lawsuit filed by FTX.
- The FTX lawsuit aims to recover funds allegedly transferred fraudulently.
- Both parents, who are professors at Stanford Law School, deny any direct involvement.
Joseph Bankman and Barbara Fried Contest FTX Allegations
Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried, have recently requested a court to dismiss a lawsuit filed by the bankrupt cryptocurrency exchange FTX.
This lawsuit, filed in September 2023, seeks to recover millions of dollars that FTX alleges were fraudulently transferred. Bankman-Fried’s parents, both professors at Stanford Law School, have challenged the existence of a fiduciary relationship with FTX.
“Although the plaintiffs allege that the defendants interacted with the debtor entities in limited capacities, none of the defendants have ever held any executive positions of any kind.”
stated the attorneys for SBF’s parents
They have emphasized that they have never held executive positions within FTX or Alameda Research, and have denied the allegations that they benefited from fraudulent transfers from the bankrupt company.
As a reminder, their son, Sam Bankman-Fried (SBF), has been accused of fraud and financial misconduct related to the collapse of FTX.
Details of the Lawsuit
The FTX lawsuit against Bankman-Fried’s parents includes several allegations, including the purchase of a luxury property in the Bahamas and significant political and charitable contributions, some of which were made to Stanford University.
The plaintiffs have also argued that Bankman referred to Alameda as a “family business“, implying possible personal and direct involvement in the company’s operations.
Bankman and Fried’s attorneys have refuted these allegations, stating that these actions do not constitute evidence of their direct involvement in illegal transfers. They have also highlighted that the FTX lawsuit does not provide concrete evidence of their “actual knowledge” of actions that could have resulted in a breach of fiduciary duties.
