FTX attorneys accuse Sam Bankman-Fried's parents of unjustly enriching themselves with company funds
Lawyers for collapsed cryptocurrency exchange FTX Trading are accusing Sam Bankman-Fried's parents of exploiting their influence over their son and the company he founded to enrich themselves by millions of dollars
DOVER, Del. (AP) — Lawyers for collapsed cryptocurrency exchange FTX Trading have filed a lawsuit accusing the parents of Sam Bankman-Fried of exploiting their influence over their son and the company he founded to enrich themselves by millions of dollars.
The complaint filed Monday against Allan Joseph Bankman and Barbara Fried in the FTX bankruptcy case in Delaware seeks to recover damages allegedly caused to the company through breaches of fiduciary duties, fraudulent transfers, unjust enrichment and other wrongdoing.
FTX entered bankruptcy in November when the global exchange ran out of money after the equivalent of a bank run. Bankman-Fried has pleaded not guilty to charges that he cheated investors and looted customer deposits to make lavish real estate purchases, campaign contributions to politicians, and risky trades at Alameda Research, his cryptocurrency hedge fund trading firm. His trial on federal fraud charges is scheduled to begin Oct. 3 in Manhattan.
Several other former FTX executives have pleaded guilty to fraud and conspiracy charges and are cooperating with investigators.
