SBF, which went bankrupt in November and admitted to defrauding its customers in Twitter Space broadcasts, is going through tough times. Now, his family has joined him, and we may soon see them in courtrooms. With generous donations to politicians and regulatory advice on crypto, SBF has always been in the spotlight. But it was his family that was the driving force behind his powerful relationships.
SBF, the golden child of the Democrats, disappointed the Biden administration in November. Then a few months later, the Democrats’ Gensler waged a virtual war on cryptocurrencies. By the time we reached June, SBF faced the risk of sharing the same fate as FTX, so he filed lawsuits against Coinbase and Binance exchanges. The problem is that while Coinbase is a company that is traded on the exchange and regularly audited, it faced more pressure than FTX. Perhaps this is due to Brian and his team not having politically influential parents.
The creditors of the bankrupt cryptocurrency exchange FTX have filed a lawsuit against the parents of FTX’s founder, Sam Bankman-Fried. It is alleged that the parents misappropriated millions of dollars by involving themselves in the affairs of the exchange.
The parents were sued today on behalf of the victims represented by the law firm Sullivan & Cromwell. The plaintiffs claimed that Bankman and Fried enriched themselves at the expense of the debtors on the FTX bankruptcy table by using their access and influence within the FTX empire. Contrary to SBF’s claims, the debtors alleged that SBF’s parents were “very much involved” in the FTX business from its inception to its collapse.
“As early as 2018, Bankman described Alameda as a ‘family business.’ Even as the FTX Group was heading towards bankruptcy, Bankman and Fried generously profited from this ‘family business’.”
According to the plaintiffs, SBF’s father, who is a professor at Stanford Law School, had extensive decision-making authority as the “de facto manager” of FTX Group.
The plaintiffs also wrote that SBF’s mother, who is also a professor at Stanford Law School, actively participated in FTX’s political donations. Allegedly, Fried served as the “most influential advisor” in FTX Group’s political contributions.
Now, it is up to the court to investigate the role of the family in the FTX fiasco.