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SBF Parents Joseph Bankman & Barbara Fried Seek To Dismiss FTX Clawback Lawsuit – Crypto News

Published

3 years ago

January 17, 2024

Dripp

Sam Bankman-Fried’s parents Allan Joseph Bankman and Barbara Fried have requested the court to dismiss the clawback lawsuit against them claiming that they did not know about the problems at the crypto exchange FTX or deliberately tried to take benefit of the conditions and pulled money out before the collapse in November 2022.

Joseph Bankman & Barbara Fried Files to Dismiss Lawsuit

Joseph Bankman and Barbara Fried have asked a U.S. bankruptcy judge to dismiss the lawsuit, according to a memorandum of law filed in the Delaware bankruptcy court. They rejected claims of being insiders who pulled money from FTX before it collapsed.

They printed out that FTX’s lawsuit is merely dependent on the fact that their son was a founder and executive of FTX. Also, they rejected claims that they were insiders at the company or were aware of problems that led to its collapse.

Joseph Bankman said he offered legal advice to his son, including tax advice on the $10 million gift that Bankman-Fried gave to his parents. However, he was not related to FTX operations and management, according to the filing.

Regarding the Bahamas property in the lawsuit, Bankman and Fried said that it was not their “primary or exclusive residence,” but instead a shared FTX property that was also used by FTX employees as a temporary residence and workplace. Furthermore, she denied transferring FTX political donations to her organization Mind the Gap, saying she never knew how any political donations from the company were sourced or structured.

FTX filed a lawsuit against Sam Bankman-Fried’s parents Joseph Bankman and Barbara Fried to clawback money and other gifts they received from the executives of the company.

Earlier reports and testimonies revealed that FTX Group was indeed a self-described “family business,” run to benefit a group of insiders. Bankman as an advisor played a key role in perpetuating a “culture of misrepresentations and gross mismanagement.” He even helped cover up allegations against the firm and its insiders.

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