FTX sues Bankman-Fried's parents over missing millions

Bangkok Post Group

Bankrupt crypto exchange FTX on Monday (September 20) sued the parents of founder Sam Bankman-Fried, saying that Stanford professors Joseph Bankman and Barbara Fried used the company to enrich themselves at the expense of FTX's customers. - REUTERS

Transcript

00:00 Bankrupt crypto exchange FTX sued the parents of founder Sam Bankman-Fried on Monday, saying

00:07 they enriched themselves with company funds.

00:09 FTX is now led by John Ray, an expert in helping companies recover assets after bankruptcy.

00:15 It's clawed back more than $7 billion so far since its bankruptcy in November 2022, after

00:21 it emerged an inside circle at FTX benefited from misappropriating billions in customer

00:26 funds.

00:27 The FTX lawsuit on Monday alleges Joseph Bankman and Barbara Fried, both Stanford University

00:32 professors of accepting a $10 million cash gift and a $16 million luxury property in

00:38 the Bahamas, and that they pushed FTX to make tens of millions of dollars in donations,

00:43 including to Stanford University.

00:45 The lawsuit said the company founder Sam Bankman-Fried ran it as a family business.

00:50 It said his father, Joseph Bankman, a scholar in tax law, positioned himself as the adult

00:55 in the room in the company, but stayed silent when he saw warning signs of fraud, and he

01:00 did little to prevent customer funds from being misappropriated.

01:03 Meanwhile, Barbara Fried, the mother, was the strongest influence on FTX's political

01:08 contributions, causing FTX's former leader to siphon millions directly to a political

01:13 action committee she co-founded.

01:16 Attorneys representing the parents in a statement called FTX's claims completely false.

01:21 As for FTX's founder Sam Bankman-Fried, he pled not guilty to charges of fraud, and he's

01:26 currently jailed ahead of a trial that will begin early next month.

01:29 [BLANK_AUDIO]

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