HomeNEWSFTX sues SBF parents to recover looted assets

FTX sues SBF parents to recover looted assets


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Embattled crypto exchange, FTX has filed a lawsuit against the parents of disgraced Sam Bankman-Fried. The leadership of the exchange filed a lawsuit against Joseph Bankman and Barbara Fried to recover some of its assets. The exchange accused the parents of SBF, who are reputable law professors at Stanford, of aiding the mismanagement of its users’ assets.

As revealed, the assets are worth millions of dollars. With the lawsuit, FTX urged the court to ensure that the couple pay damages for the misappropriation. Also, the exchange asked the court to help it recover any gifts or property the couple could have received from the loot. More so, the crypto exchange contended that the parents of SBF manipulated their access to FTX through their son. 

The Plaintiff accused Joseph Bankman of influencing most decisions that birthed the mismanagement. The exchange established that Bankman unofficially served as a “de facto officer.” Consequently, giving him the power to make crucial decisions relating to the activities of the cryptocurrency exchange. 

Furthermore, the lawsuit indicated that SBF transferred $10 million to himself. FTX claimed that the disgraced CEO leveraged his knowledge of tax law and the administrative structure of the cryptocurrency exchange to loot the platform. Likewise, the exchange stated that Barbara Fried convinced SBF to make a variety of donations to her political action committee (PAG). The action group is known as Mind the Gap (MTG).

Meanwhile, FTX refused to reveal the actual amount donated to the PAC. However, there are indications that the amount could be worth up to tens of millions of dollars. Due to that, FTX said it is pursuing corrective damages due to the “conscious, willful, wanton, and malicious conduct.”

Highlight of how the FTX team is pursuing to reclaim mismanaged users’ assets 

Since the appointment of John Ray III as the CEO of FTX, the exchange has embarked on relentless efforts to reclaim mismanaged users’ assets. In a disclosure, the new leadership of FTX revealed that the crypto exchange went down with about $8.7 billion worth of users’ deposits. 

Further, the new leadership revealed that $6.4 billion of the mismanaged funds were in fiats and stablecoins. However, about $7 billion has been recovered so far. Now, the lawsuit against Joseph Bankman and Barbara Fried is targeted at reclaiming the remaining funds. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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