After the scandal in 2022, the name Sam Bankman-Fried occupied the crypto agenda for a long time. SBF’s parents, Allan Joseph Bankman and Barbara Fried, made a significant decision. They filed a motion in court claiming they were unaware of the issues at the crypto exchange FTX and requested the dismissal of the lawsuit against them for allegedly withdrawing money before the collapse in November 2022.
The Case of Joseph Bankman and Barbara Fried
In their application to the Delaware bankruptcy court, Joseph Bankman and Barbara Fried asked the U.S. bankruptcy judge to dismiss the case. They denied allegations that they were among those who withdrew money from FTX before its collapse.
The family also commented on the FTX case, stating that their involvement was only related to the fact that their son was the founder and manager of FTX. They also firmly denied having any knowledge of the company’s internal affairs or the issues that led to its downfall.
Joseph Bankman also clarified the matter of the $10 million gift given to Sam Bankman-Fried’s family, stating that he provided legal advice to his son on various matters, including tax consultancy.
Regarding the property in the Bahamas mentioned in the lawsuit, the father and son stated that it was not their “primary or special residence,” but a property belonging to FTX, used as a temporary residence and workplace by FTX employees.
The father also addressed another accusation, denying allegations that FTX’s political donations were funneled to his own company, Mind the Gap. He claimed to have no knowledge of how any political donations from the company were received or structured.
The Company Also Takes Action Against the Family
On the other hand, the FTX exchange, which is trying to restructure, and its legal team have taken legal action against Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, for the return of money and other gifts they received from company executives.
Previous reports and statements had revealed that FTX Group was indeed a “family business” and was managed to benefit a certain group within the company. The reports included the following statement:
Bankman played a key role in perpetuating a culture of “misrepresentation and gross mismanagement” as an advisor. He even helped cover up allegations against the firm and insiders.
