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FTX sues Sam Bankman-Fried's parents

The crypto exchange's trustees are demanding damages for "embezzled" payments to the parents of FTX founder Sam Bankman-Fried.

By Mike Hesp
• 1 min read
FTX sues Sam Bankman-Fried's parents

The crypto exchange's trustees are demanding damages for "embezzled" payments to the parents of FTX founder Sam Bankman-Fried.

The parents of FTX founder Sam Bankman-Fried may have to make millions compensation pay to the collapsed exchange. According to court documents Indeed, the trustees of FTX have sued Joseph and Barbara Bankman-Fried.

According to the lawsuit, FTX is demanding the return of fraudulently made payments and assets received from the two. Both are thus alleged to have knowingly played a role in the FTX scandal.

Sam Bankman-Fried paid his parents about $19 million in fees, taxes and other expenses. Joseph and Barbara accepted the money in full awareness of their son's "evil behavior."

In addition, Joseph was able to funnel tens of millions of dollars to himself "due to his knowledge of tax laws and his oversight of FTX's complex corporate web," according to the indictment.

Both parents of the FTX founder are law professors at Stanford University in the US. Their expertise and help would have allowed embezzled funds to disappear into the corporate web.

In October, Sam Bankman-Fried is due in court for the alleged fraud.

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