It appears that the whole Bankman-Fried family was involved in misappropriating FTX funds.
Crypto exchange FTX debtors have recently filed a complaint against former FTX CEO Sam Bankaman-Fried's parents, Joseph Bankman and Barbara Fried.
According to the documents submitted to the US Bankruptcy Court for the District of Delaware on September 18th, the debtors accuse the couple of wrongfully benefiting from their son's enterprise.
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Joseph Bankman, who paused his academic career at Stanford Law School in 2021 to work at FTX US, signed on for a $200,000 yearly salary. However, he later asserted to his son and the company that he had anticipated a $1 million salary.
Interestingly, the court documents contain a note stating that Bankman was planning to involve his wife, Barbara, to convince Sam to increase his salary.
It seems that Bankman's plan yielded results. Notably, the couple received a $10 million payment from Alameda, a Bahamas property (worth over $16 million) funded by FTX Trading, and stock purchase options.
This internal family strife appears to have impacted the tumultuous period for FTX and its affiliated companies. Legal troubles have been mounting since the firms declared bankruptcy in November 2022.
The former FTX CEO, Sam Bankman-Fried, is also bracing for multiple criminal trials scheduled to kick off in October 2023 and March 2024. Complicating matters further, his bail was revoked in August, with him waiting for an October trial at the Metropolitan Detention Center in Brooklyn.
The intricacies of family ties are now tangled up in FTX's legal and financial difficulties, shedding light on yet another convoluted layer to the company's ongoing woes. As the former CEO prepares for trial, it becomes clear that family matters may have a significant role to play in how issues in FTX have unfolded.