Following the 2022 scandal, Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, have requested the dismissal of a lawsuit against them. They assert their ignorance of FTX’s issues prior to the exchange’s collapse in November 2022 and deny allegations of withdrawing money beforehand.
Bankman and Fried have petitioned a Delaware bankruptcy court to reject the case, refuting claims of insider money withdrawals before FTX’s downfall. They emphasize their non-involvement in the company and lack of knowledge about the problems leading to its demise.
Joseph Bankman also addressed a $10 million gift to his son, explaining his role in providing legal advice to Sam Bankman-Fried on various matters, including tax consultancy.
Addressing another accusation, the family clarified that a property in the Bahamas was used as a temporary residence and workplace by FTX staff, and not as their primary or special residence. Furthermore, Joseph Bankman denied transferring FTX’s political donations to his own company, Mind the Gap, claiming ignorance of the donations’ origins or structure.
Meanwhile, FTX’s legal team is pursuing the recovery of money and gifts allegedly taken by Bankman and Fried. Reports have suggested that FTX Group operated as a “family business” that favored a particular internal group, with Bankman playing a key role in perpetuating a culture of misrepresentation and mismanagement.