FTX sues Bankman-Fried’s parents, targets $26M in gifts and property

FTX sues Bankman-Fried’s parents, targets $26M in gifts and property

By Benson Toti - min read
  • FTX has sued the parents of Sam Bankman-Fried.
  • The bankruptcy estate of the collapsed crypto exchange says founder and former CEO Sam Bankman-Fried fraudulently gifted millions of dollars to his parents.
  • FTX wants to recover $10 million in cash gift and $16.4 million in property in The Bahamas.

Bankrupt crypto exchange FTX has sued Allan Joseph Bankman and Barbara Fried, the parents of former FTX CEO Sam Bankman-Fried.

According to details filed in court, FTX aims to recover millions of dollars fraudulently gifted to Bankman-Fried’s parents by the collapsed crypto exchange. 

FTX aims to claw back $26.4 million

Per the FTX bankruptcy estate, SBF’s parents used their influence within the company to acquire a $10 million cash gift and $16.4 million in luxury property located in The Bahamas. These transactions occurred even as the parties involved knew of the likely insolvent status of the crypto exchange.

FTX said in the court filing at the US Bankruptcy Court for the District of Delaware that it wants to recover the misappropriated funds. The exchange’s complaint also includes details of email exchanges between Bankman and FTX US over the payment of $200,000 annual salary. According to the former Stanford University professor, his annual salary was “supposed” to be $1 million a year.

In part of the email quoted by CNBC, Bankman said to his son: “Gee, Sam I don’t know what to say here. This is the first [I] have heard of the 200K a year salary! Putting Barbara on this.”

Conor Grogan, head of product at Coinbase highlighted this on X:

It’s after this exchange that $10 million was taken from Alameda and the property worth $16.4 million was gifted to the ex-FTX CEO’s parents.

Bankman-Fried faces a criminal trial set to begin on October 3 and was recently sent to jail after federal prosecutors sought his detention over witness tampering. The disgraced FTX founder faces several wire and securities fraud charges.