Parents of FTX Founder Seek Dismissal of Lawsuit Over Alleged Fund Transfers

Joseph Bankman and Barbara Fried, parents of Sam Bankman-Fried, are seeking the dismissal of a lawsuit filed by the bankrupt FTX cryptocurrency exchange, which aims to recover funds allegedly fraudulently transferred.

The lawsuit, initiated in September 2023, sought to reclaim “millions of dollars” from Bankman and Fried. Despite their son’s subsequent conviction on charges of defrauding customers and the U.S., Bankman and Fried, both professors at Stanford Law School, argue that there was no fiduciary relationship with FTX.

They contend that even if such a relationship existed, FTX must show “actual knowledge” of actions leading to a breach of fiduciary duty, not merely that the parents “knew or should have known.” The lawsuit did not specify the total amount misappropriated, but detailed line items including Bankman’s salary, property expenses, and donations to Stanford University.


Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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