In order to trace the maximum of goods that could have been obtained with the funds of FTX customers, the lawyers of the exchange wish to question the close entourage of Sam Bankman-Fried under oath. This concerns in particular the parents of the latter, with whom he would have bought more than 120 million dollars of real estate.
SBF’s family interests FTX lawyers
The new management of FTX, accompanied by its various lawyers, continues to lead the investigation concerning the empire of Sam Bankman-Fried. Via a document filed with the court, FTX has asked the court to have SBF’s family questioned under oathin particular concerning its real estate assets and its financial links with the bankrupt exchange.
FTX attorneys accuse the ex-CEO’s parents, in addition to certain individuals with close ties to the exchange, to refuse to cooperate in the investigation aimed at tracing the funds :
“Some insiders are currently cooperating with debtors to provide material information. But others don’t, and so the authority to issue subpoenas to those with the missing information is critical to debtor and committee collection efforts. »
A request that follows the staggering lack of rigor on the part of the exchange during its years of activity, since according to the words of the new CEO John Ray III, the accounts of FTX were totally disordered. Thus, to put things in order and trace a maximum of funds, the lawyers wish to hear the family of Sam Bankman-Fried as well as his closest lieutenants, including Caroline Ellison and Gary Wang :
“Insiders are in the best position to assist claimants by providing useful information to untangle the complex web of entities and transactions they have created. »
This investigation relates in particular to the commercial activities of FTX, the management of its assets, but also access to personal property documents of those around SBF.
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What role did the SBF family play within FTX?
Joseph Bankman, the father of Sam Bankman-Fried, is an attorney currently a professor of law and business at Stanford Law School. He himself is said to have carried out the recruitment of the first lawyers for FTX, and he also provided tax advice to the employees of the company.
His wife, Barbara Fried, was also heavily involved in FTX according to the filing. She reportedly founded a political action committee that received funding directly from FTX and some of the company’s senior executives.
Sam’s brother, Gabriel Bankman-Fried, is a former Wall Street trader and former Democratic congressman. He also participated in the creation of the NGO Guarding Against Pandemics, an organization created following the events relating to Covid-19 which aims to support government efforts to prevent future pandemics. Sam Bankman-Fried has been a direct financial supporter of the NGO, and has actively participated in certain campaigns in this direction alongside his brother.
According to the Reuters news agency, Sam Bankman-Fried and his parents jointly purchased at least 19 properties with a monetary value of at least $121 million.
In addition, one of the many branches of FTX would have been used to finance several real estate properties in the Bahamas in order to house senior executives of FTX. No less than 300 million dollars from the Bankman-Fried empire would have been disbursed to finance these luxurious dwellings.
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Sources: Bloomberg, Reuters
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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