Bankrupt FTX exchange has accused Sam Bankman-Fried’s parents of improperly diverting millions through alleged manipulation.
The complaint filed on Sept. 18 accuses Joseph Bankman and Barbara Fried, both professors at Stanford Law School, of exploiting their positions within the company to amass wealth illicitly, actions that allegedly played a significant role in the company’s downfall.
The plaintiffs claim that contrary to SBF’s earlier statements, his parents were deeply involved in the business operations since its inception.
SBF’s parents alleged misuse of authority
The lawsuit documents reveal that Joseph Bankman held significant sway in the decision-making processes at FTX, functioning as a “de facto officer.” His involvement supposedly included a stint in executive roles within the company’s management team.
Meanwhile, Barbara Fried, who co-founded the political action committee Mind the Gap (MTG), is accused of being a major influence in directing the company’s political donations, often urging substantial contributions to MTG.