FTX Chasing Bankman-Fried Family for Answers Over Wealth: Report
Lawyers for the bankrupt FTX exchange are seeking answers from the family of alleged crypto fraudster Sam Bankman-Fried.
FTX asked a judge if they could question the family under oath about their wealth and personal fortunes, according to a court filing.
Sam Bankman-Fried’s closest relations and a handful of company executives are still in the spotlight as the firm continues to hunt for hidden assets to repay creditors, reported Bloomberg on Jan. 26.
FTX advisers and lawmakers have taken an aggressive approach to recover as much as they can from the missing billions owed to creditors and customers.
SBF’s parents, Joseph Bankman and Barbara Fried, are high on the list of those the embattled firm wishes to question.
FTX Parents Sought
A law professor at Stanford Law School, Joseph Bankman, provided tax advice to FTX employees and helped recruit the firm’s first lawyers, according to the filing.
Furthermore, his mother, Barbara Fried, was also involved in the multi-billion dollar company, but details were not specified.
Gabriel Bankman-Fried, the brother, founded an organization to lobby members of the U.S. Congress from a multimillion-dollar property near the U.S. Capitol, the filing stated.
SBF and FTX spent millions on political donations, the majority of which went to the Democrats. According to Open Secrets, SBF was the seventh-largest political donor for the 2022 cycle. He spent a total of $40 million on campaign contributions to federal candidates, parties, and political action committees.
The bankruptcy judge presiding over the case, John Dorsey, must approve the request before FTX lawyers can subpoena Bankman-Fried’s family. If successful, they would be required to submit to questioning and provide documents to the court.
On Jan. 26, a document revealed the wide-reaching extent of those who got burned by the FTX collapse. The creditors’ list includes tech and commerce giants Apple, Amazon, Google, Meta, Microsoft, and Samsung.
FTX lawyers exposed a 115-page document with a whopping 9,693,985 creditors affected.
FTT Token Latest
Despite the ongoing turmoil at the bankrupt exchange, degen traders continue to buy and sell its native token, FTT. Remarkably, it has doubled in price over the past month, according to CoinGecko.
The movement does appear to be a pump and dump, however, as FTT has tanked 20% over the past week when markets have been climbing.
FTT was trading at $1.84 at the time of writing, down 97.8% from its September 2021 all-time high of $84.