In a dramatic turn of events, legal representatives for Joe Bankman and Barbara Fried, the parents of cryptocurrency tycoon Sam Bankman-Fried (SBF), have responded aggressively to FTX’s lawsuit against them.
according to a Report The legal team of Sean Hecker and Michael Tremonte of The Block dismissed FTX’s claims as “completely false” and expressed concern that the lawsuit comes just days before their son’s trial.
FTX accuses bankers, Fried of using insider status to gain personal wealth
Legal representatives for Bankman and Fried responded following FTX’s response litigationaccused the parents of orchestrating some of FTX’s deceptions and embezzling more than $30 million from the company.
The failed company alleged that Bankman and Fried used their insider status to amass personal wealth while facing financial turmoil and ultimately collapse in November 2022.
Bankman and Fried were described as “a dangerous attempt to intimidate”, with their legal representatives denouncing FTX’s actions as an attempt to undermine the jury process.
They further criticized FTX CEO Mr Ray and his legal team, suggesting they were aware of the lies behind the claims.
The lawsuit filed by the exchange alleges that Bankman, a tenured professor at Stanford University Law School with extensive experience in tax law, took advantage of his insider status at FTX.
Bankman allegedly played a central role in the misappropriation of billions of dollars of client and investor funds while advising the company on legal and corporate matters. Fried, a domestic partner of Bankman and a professor at Stanford Law School, has been accused of being actively involved in the FTX insider world.
Fried allegedly influenced political contributions from their son Bankman-Fried and the FTX Group, including to organizations such as Mind the Gap, Inc., a political action committee she co-founded and chaired.
Lawsuit alleges unjust enrichment and aiding trust violations
Bankman and Fried’s influence and control over the company The funding scale continues to expand as the company faces bankruptcy. FTX alleges that despite the parents being aware of the company’s finances, they discussed transferring large sums of money and luxury properties for personal gain.
The legal action against Bankman and Fried includes charges of intentional and constructive fraudulent conveyance, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment and denial of claims.
The plaintiffs seek to recover the assets and property transferred to the defendants and to have any claims they asserted in the bankruptcy proceedings dismissed.
As the legal battle unfolds, legal representatives for Bankman and Fried vowed to vigorously defend their clients and left the door open for further legal action against the defendants if necessary.
The outcome of this high-stakes legal conflict will undoubtedly have far-reaching consequences for the future of the bankrupt cryptocurrency exchange and the Bankman-Fried family.
Featured image from iStock, chart from TradingView.com
