• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Sunday, June 22, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Crypto

Lawyers Accuse Sam Bankman-Fried’s Parents of Involvement in FTX Collapse

by Ayush Singh
September 15, 2023
in Crypto, Crypto Exchanges, Crypto Regulation, News, World
Reading Time: 3 mins read
0
FTX held talks about $100 million sponsorship deal with Taylor Swift

FTX chief Sam Bankman-Fried’s extension of a $250mn loan to BlockFi has led to him being likened to a ‘lender of last resort’ for the crypto industry

TwitterWhatsappLinkedin

In a shocking turn of events surrounding the collapse of the once-mighty crypto exchange, FTX, lawyers and legal experts are now turning their attention to the alleged role played by Sam Bankman-Fried’s (SBF) parents, Joseph Bankman and Barbara Fried, in the downfall of the exchange. Alarming questions have arisen concerning their involvement, raising suspicions of their contribution to the multi-billion dollar FTX fraud.

You might also like

Louisiana Redefines Gas as “Green Energy” in Controversial New Legislation

Intel to Lay Off Over 10,000 Employees with No Severance

Jeff Bezos and Lauren Sánchez’s $16M Venetian Wedding

The Parents Behind the Scenes

Sam Bankman-Fried, the visionary behind FTX, reportedly didn’t walk this path alone. His parents, Joseph Bankman and Barbara Fried, were purportedly integral to several aspects of the exchange’s operations. This included marketing, advertising, and even the launch of the FTX Token (FTT). Their involvement in the exchange’s decision-making processes has come under scrutiny.

According to reports, SBF’s parents leveraged their extensive network and industry insights to facilitate FTX’s meteoric rise. Bankman and Fried were renowned figures at Stanford University, where they shared their knowledge at the law school for over three decades. Their influence within the crypto world remains a matter of concern.

Sam Bankman-Fried’
Sam Bankman-Fried’

Profits Amidst Collapse

The collapse of FTX in November 2022 sent shockwaves throughout the cryptocurrency community. While Sam Bankman-Fried faces multiple lawsuits and charges for orchestrating the exchange’s alleged fraud, his parents have managed to evade formal charges thus far. However, they have not escaped the financial gains, having reportedly profited to the tune of over $26 million in various forms, including cash and real estate, from the exchange’s proceeds.

The Questionable Involvement

People familiar with the matter have suggested that Joseph Bankman was directly involved in a $20 million FTX commercial aired during the 2022 Super Bowl. This raises concerns about his potential influence on the exchange’s marketing strategies and decisions. Moreover, prosecutors have indicated their interest in the legal advice sought by SBF from his father during his tenure as FTX’s chief executive.

The revelation of Bankman’s involvement in meetings discussing tax issues and marketing materials development for FTT, the cryptocurrency pivotal to FTX’s collapse, adds a layer of complexity to the situation. It’s especially intriguing considering SBF’s potential reliance on an “advice-of-counsel” defense, which hinges on the guidance received from lawyers during FTX’s operation.

The Legal Battle Continues

Sam Bankman-Fried and several FTX insiders have been accused of misappropriating billions of dollars of customer funds, marking it as one of the largest frauds in American history. Despite the litany of charges against him, including fraud and money laundering, SBF maintains his innocence.

One critical aspect in this saga is Bankman’s role in the decision to relocate FTX’s headquarters to the Bahamas from Hong Kong, a move that has further fueled speculation about the exchange’s actions and intentions.

Additionally, a lawsuit by FTX’s current management in July alleges that funds, including a $10 million gift to Joseph Bankman, were mismanaged, with the money being used for SBF’s legal defense.

The Super Bowl Appearance

Notably, Joseph Bankman made a cameo appearance as a U.S. founding father in an FTX commercial during the 2022 Super Bowl. In this ad, Bankman defended the U.S. Constitution against comedian Larry David’s critique, adding another layer of intrigue to his involvement in the exchange’s activities.

The Fallout and Ongoing Questions

As FTX’s fortunes plummeted and customer withdrawals surged, the exchange found itself unable to meet its obligations, ultimately filing for bankruptcy. The revelation that FTX did not hold one-to-one assets of customer reserves further deepened the crisis.

Crypto lawyer John Deaton has now taken to social media to expose the financial transactions involving SBF’s parents, casting a shadow of doubt on their role in FTX’s financial affairs.

As legal proceedings continue, the spotlight on Sam Bankman-Fried’s parents and their involvement in the dramatic collapse of FTX remains. Alarming questions persist, and the crypto community watches closely for answers and accountability.

For more such update on Crypto keep on Reading Techstory

Tags: #Sam Bankman-FriedFTX bankruptcyFTX CollapseFTX LawsuitFTX scandal
Tweet54SendShare15
Previous Post

Japanese Government to Allow Start-ups to Raise Public Funds via Crypto Assets

Next Post

How To Unlock Fatalities in Mortal Kombat 1

Ayush Singh

Recommended For You

Louisiana Redefines Gas as “Green Energy” in Controversial New Legislation

by Anochie Esther
June 22, 2025
0
Green energy

In a move drawing sharp criticism from environmentalists and energy policy experts alike, Louisiana lawmakers have passed HB692, a bill that reclassifies natural gas a fossil fuel as...

Read more

Intel to Lay Off Over 10,000 Employees with No Severance

by Anochie Esther
June 22, 2025
0
Intel

In a move set to reshape the global semiconductor landscape, Intel Corporation will lay off between 15% and 20% of its Intel Foundry division workforce beginning July 2025....

Read more

Jeff Bezos and Lauren Sánchez’s $16M Venetian Wedding

by Anochie Esther
June 22, 2025
0
Jeff Bezos

When the world’s third-richest man decides to tie the knot, the result is anything but modest. Jeff Bezos and Lauren Sánchez are preparing for what is already being...

Read more
Next Post
How To Unlock Fatalities in Mortal Kombat 1

How To Unlock Fatalities in Mortal Kombat 1

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?