FTX Plans to Interrogate Bankman-Fried’s Family Under Oath
- FTX recently released its creditor list, which showed that it owed companies such as Netflix and Google.
- Should Judge Dorsey approve FTX’s lawyer’s request, it is uncertain if questioning the family will help the company retrieve funds.
- Bankman-Fried remains under house arrest at his parent’s house in California.
According to reports, lawyers representing FTX in bankruptcy court have requested that Sam Bankman-Fried’s family be questioned about their financial situation. The crypto exchange’s lawyers intend to question Bankman-Friend’s family on whether they received monetary benefits from the exchange.
According to Bloomberg, FTX’s lawyers said in a court filing that Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, as well as his brother, Gabriel Bankman-Fried, should provide financial records about their individual wealth. The new FTX management has prioritized the recovery of funds that could be used to pay creditors. US Bankruptcy Judge John Dorsey must grant the request before FTX can begin any inquiry.
Multiple reports claim that Bankman-Fried’s family played huge roles in the exchange before its collapse in November. Bankman-Fried’s father, Joseph, reportedly helped the exchange recruit its legal team and also offered tax advice. Bankman-Fried’s mom, Barbara, allegedly started a political action committee with funding from FTX.
Additionally, Bankman-Fried’s brother Gabriel reportedly founded a pandemic-focused foundation that lobbied lawmakers. Reports emerged in November that Bankman-Fried’s parents were listed as signatories for a house in the Bahamas, which Bankman-Fried claimed was company property.
FTX founder Sam Bankman-Fried has been caught up in legal trouble after being charged with fraud. Federal prosecutors claim that FTX transferred billions of dollars in client funds to back up his trading company, Alameda Research. Bankman-Fried has remained at his parents’ house in California as he continues to await his trial.