- Parents of former FTX CEO Sam Bankman-Fried have filed to dismiss a lawsuit against them by FTX.
- According to Joseph and Barbara, they are not capable of influencing decisions at FTX.
- The couple debated the lack of evidence regarding their awareness of the circumstances leading to FTX’s collapse.
Joseph Bankman and Barbara Fried, parents of former FTX CEO Sam Bankman-Fried, have filed to dismiss a lawsuit against them by FTX. Bankman-Fried parents, in the filing, denied allegations that they contributed to the company’s downfall. Furthermore, they are seeking to reclaim seized funds and gifts allegedly received from their son and the bankrupt crypto exchange.
Last Monday, Bankman-Fried parents filed in Delaware bankruptcy court to deny being capable of influencing decisions at FTX. In their motion, the couple argued a lack of evidence in an FTX lawsuit accusing them of controlling the company. They also debated the lack of evidence regarding their awareness of the circumstances leading to FTX’s collapse.
The couple did not deny that Bankman occasionally provided legal advice to FTX, including tax guidance on a $10 million gift. However, they insisted on not holding any formal position in the company and could not direct payments.
Additionally, Bankman-Fried’s parents noted that the luxury property in the Bahamas was not their exclusive residence. According to Bankman and Fried, it served as a shared accommodation for the company’s staff.
In an original lawsuit, FTX accused Bankman-Fried’s parents of playing a significant role in the company’s downfall. The crypto exchange alleged that the couple received a $10 million cash gift, a $16.4 million luxury property in the Bahamas. It also accused them of orchestrating up to $5.5 million in donations to Stanford University and a minimum of $10 million to Fried’s political action committee.
The crypto exchange added that the transactions involved in the lawsuit happened while the exchange was facing financial distress. Nonetheless, Bankman-Fried’s mother, Barbara Fried, has denied any involvement in directing political donations. According to her, she does not know the source and structure of FTX’s political donations.
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