FTX Lawyers Claim Sam Bankman-Fried’s Family Not Cooperating With Financial Probe

Jan. 28, 2023
FTX Lawyers Claim Sam Bankman-Fried’s Family Not Cooperating With Financial Probe

According to a legal filing made on Wednesday, FTX’s lawyers have stated that certain members of Sam Bankman-Fried’s immediate family have not been cooperating with the investigation into the collapse of the crypto exchange and should be subject to cross-examination in court.

Despite exhibiting a high level of cooperation and even serving time in jail. Sam Bankman-Fried has been unable to provide all necessary information regarding the misappropriation of funds, leading to the current state of the situation.

As stated in the filing:

The new management of FTX is seeking to subpoena the founder’s brother, mother, and father, who acted as advisors alongside former company executives, to uncover the truth behind the alleged misappropriation of funds.

FTX Founder Family Under Investigation

According to the filing, discussions with Joseph Bankman, Sam Bankman-father, are “ongoing” and should result in a mutually agreeable resolution.

The Debtors and their advisors have been working tirelessly and nonstop over the last 70 plus days … to implement controls, recover and protect estate assets,” said the legal filing made jointly by FTX and creditor representatives.

The lawsuit said, “Key doubts remain regarding many elements of the Debtors’ finances and dealings.FTX claims that certain possible witnesses aren’t cooperating freely despite invitations to do so. It wants to know who allegedly got stolen funds from FTX and what conversations they had with company leaders.

Barbara Fried, Sam Bankman-mother, “has completely disregarded the demands,” as stated by the lawyers. In contrast, “[former head engineer Nishad] Singh and Mr. Gabriel Bankman-Fried, Sam’s brother, have not provided significant engagement or any answer to the debtors.”

Per the FTX, referred to as the Debtor in bankruptcy proceedings, Gabriel Bankman-lobbying Fried’s group, Guarding Against Pandemics. However, they purchased a multimillion-dollar property a few blocks from the United States Capital. In addition, the debtors believe it was purchased using misappropriated customer funds.

Sam Bankman-Fried and other FTX employees are also alleged to have donated to Fried’s political action committee, Mind the Gap, and both parents, according to the filing.

resided in a $16.4 million Bahamas house titled in their names, despite understanding that the house was intended to be the company’s property.

Related Reading | CoinTracker Lays Off 20% Of Staff Due To Industry Slowdown And Over-Hiring

The lawsuit said

Sam Bankman-Fried, the co-founder of FTX, Gary Wang, and Caroline Ellison, CEO of trading company Alameda Research, should also be summoned to testify. Sam Bankman-Fried, expressly rejected to supply the necessary information.

The request will be considered at a hearing on February 8 in the Delaware bankruptcy court. An inquiry for comment was delayed by a Sam Bankman-Fried representative.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.