FTX Bankruptcy Estate Sues Sam Bankman-Fried's Parents, Joseph and Barbara, to Claw Back 'Misappropriated Funds'

Bankrupt crypto speech FTX has sued laminitis and erstwhile CEO Sam Bankman-Fried's parents, Joseph Bankman and Barbara Fried, to "recover millions of dollars successful fraudulently transferred and misappropriated funds," the institution said successful a Monday tribunal filing.

The filing, redacted successful parts, asks the tribunal to grant the FTX property damages, the instrumentality of immoderate spot fixed oregon outgo made to the parents by FTX successful the past, and punitive damages resulting from "conscious, willful, wanton, and malicious conduct."

"FTX Trading paid $18,914,327.82, inclusive of taxes, fees, and costs, for Blue Water, to which Bankman and Fried received title, arsenic good arsenic assorted expenses related to Blue Water totaling much than $90,000," the filing said, arsenic 1 example. The filing besides alleged that "Bankman’s bid of taxation instrumentality and unsocial knowing of the FTX Group’s muddled firm operation allowed him to facilitate the transportation of a currency acquisition totaling $10 cardinal to himself and Fried consisting of Alameda Ltd. funds."

"Bankman and Fried deployed their decades of acquisition arsenic blase instrumentality professors and veneer of legitimacy not to assistance the FTX Group, but alternatively to plunder it successful bid to enrich themselves and their favored causes," the filing alleged.

"[Bankman] frankincense knew, oregon should person known, the perilous fiscal authorities of the FTX Group, adjacent arsenic helium moonlighted arsenic an histrion successful a Super Bowl commercialized and extracted millions of dollars from the FTX Group," the filing said.

Both Bankman and Fried are professors astatine Stanford Law School. The ailment further alleges that Bankman helped different FTX insiders dissipate FTX radical funds connected donations and helped screen up a whistleblower ailment from September 2019.

Barbara Fried was the “point person” for SBF's governmental publication strategy, the filing said. Additionally, she utilized her "access and power to payment MTG [Mind the Gap], an autarkic expenditure-only governmental enactment committee that she co-founded successful 2018 and for which she served arsenic President and Chair."

The filing alleges "tens of millions of dollars" were contributed to MTG oregon MTG-supported causes astatine Barbara Fried's explicit request.

Sam Bankman-Fried is preparing for a proceedings adjacent period from down bars. Spokespeople for Bankman and Fried could not beryllium instantly reached for comment.