FTX’s Bankman-Fried Is Allegedly Using Alameda Funds to Pay for Legal Defense

According to 2 sources adjacent to FTX, Sam Bankman-Fried, the disgraced co-founder, gave his father, Stanford Law prof Joseph Bankman, millions of dollars. The funds are reportedly being utilized to wage for ineligible costs. The sources said that Bankman-Fried allegedly gave “at slightest $10 million” from the now-defunct quantitative trading steadfast Alameda Research to his father.

Sources Claim SBF’s Legal Defense Is Paid for by Alameda Loot

After the latest revised indictment charges against Sam Bankman-Fried (SBF), Forbes reports that funds tied to Alameda Research whitethorn beryllium paying for SBF’s ineligible defense. Forbes contributors Sarah Emerson and Steven Ehrlich explained that 2 unnamed sources disclosed that SBF directed “at slightest $10 cardinal from Alameda” to his father, Joseph Bankman. The duo is accused of utilizing a “lifetime property and acquisition taxation exemption” for the funds, which were allegedly fixed to Bankman successful 2021.

SBF has pleaded not blameworthy to his indictment charges, and past year, helium publicly stated that helium had lone $100,000 successful his slope account. According to Forbes reporters, “it had remained unclear, until now, however the erstwhile billionaire would spend his pricey defense.” At the extremity of 2022, it was disclosed that SBF would beryllium represented by white-collar lawyer Mark Cohen. Cohen and his litigation firm, Cohen & Gresser, are well-known for representing Ghislaine Maxwell, a convicted enactment trafficker and confidant of Jeffrey Epstein.

The 2 sources informed Forbes that successful 2021, SBF made a ample monetary acquisition to his father, funded by a indebtedness derived from Alameda Research. The Forbes reporters, Emerson and Ehrlich, noted that Cohen & Gresser “did not respond to a petition for comment,” and “Bankman-Fried declined to comment” connected the matter. The reporters besides stated that SBF’s begetter “did not respond to a database of questions” sent to him. They further added that contempt it being a gift, the funds inactive request to beryllium filed with the Internal Revenue Service (IRS).

The Forbes nonfiction follows national prosecutors’ summation of bribery charges to SBF’s indictment, accusing him of paying disconnected Chinese authorities officials. The caller complaint alleges that the erstwhile FTX CEO utilized $40 cardinal to power “one oregon much Chinese authorities officials” successful 2021. Prior to the latest charges, slope fraud charges were added to SBF’s indictment astatine the extremity of February 2023. Joseph Bankman has not been charged with immoderate wrongdoing. However, existent FTX CEO John J. Ray III told members of the U.S. Congress that Joseph Bankman and “the household surely received payments” from FTX.

What are your thoughts connected the latest developments successful the SBF case? Share your thoughts astir this taxable successful the comments conception below.

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