•FTX’s legal counsels are requesting that Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, testify under oath and produce financial papers regarding their personal fortune.
•Gabriel, the brother of former FTX CEO Bankman-Fried, will also be questioned in court over any financial benefits he may have gotten from the company.
•In light of claims that FTX shifted billions of dollars in investor cash to prop up his Alameda Research trading unit, federal authorities have accused him with fraud.
The tragedy surrounding FTX, a bankrupt cryptocurrency exchange, is becoming more personal. The exchange’s legal counsels are now seeking to drag the founder’s family members into the case and question them about how they established their affluence.
In a court filing, FTX attorneys requested that Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, appear in court and provide financial documents detailing their wealth. This is part of the company’s effort to reclaim funds that may be used to repay creditors. Gabriel, the brother of former FTX CEO Bankman-Fried, will also be subject to the same inquiry, in an attempt to locate any assets associated with the exchange that may have been given to him.
The reason for these inquiries is due to the fact that federal authorities have accused Sam Bankman-Fried of fraud. Allegations have arisen that FTX shifted billions of dollars in investor cash to prop up his Alameda Research trading unit. SBF has entered a not-guilty plea, although he has failed to provide prosecutors with all the necessary information regarding the diverted money.
The legal team at FTX is now hoping to use the testimonies of Bankman-Fried’s family members to obtain answers to their questions. If they are able to uncover any financial benefits that have been given to them, they will be able to use this information to reclaim funds and repay creditors.
The story of FTX has been one of tragedy, and it is now becoming increasingly personal for the Bankman-Fried family. With federal authorities accusing SBF of fraud, and the exchange’s legal counsels now questioning his family members, the situation is becoming increasingly dire. It remains to be seen what will happen next, though it is certain that the Bankman-Fried family will not be able to escape the legal proceedings unscathed.