IN HOT WATER

SBF’s Parents Sued Over Millions in ‘Fraudulently Transferred’ Funds

According to FTX’s lawsuit, the couple got a $10 million cash gift from their son and a $16.4 million home in the Bahamas.

FTX has sued disgraced founder Sam Bankman-Fried’s parents to recover millions in what it calls “fraudulently transferred” funds. On Monday, the bankrupt cryptocurrency exchange said Joseph Bankman and Barbara Fried, both Stanford law professors, used their “access and influence within the FTX enterprise to enrich themselves.” According to the lawsuit obtained by The New York Times, Bankman and Fried got a $10 million cash gift from their son and a $16.4 million home in the Bahamas, where FTX is headquartered. The court filing also alleged that the couple were aware that their son and his partners were “orchestrating a vast fraudulent scheme.” Bankman and Fried’s lawyers called the accusations “completely false” and “a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins.” FTX collapsed in November 2022 after a $8 billion deficit in its accounts was revealed. Prosecutors charged Bankman-Fried with using customers’ money to pay for venture capital investments and political donations. He pleaded not guilty and will go to trial Oct. 3.