FTX To Recover $26 Million From Bankman-Fried’s Parents
A recent report showed that prosecutors in charge of FTX exchange’s recovery project have accused Sam Bankman-Fried’s parents of receiving donations worth $26 million from FTX. Another news reported that Stanford University is ready to return FTX’s donations after the prosecutors pressed for repayment.
This past week has been a busy one for the team assigned to the bankrupt FTX exchange’s recovery as they have been pressing many individuals and organizations who once received any form of donations from FTX prior to its collapse for repayment. Reports showed that the parent of the former CEO of FTX, Sam Bankman-Fried (SBF), is the group’s latest target.
In the report, the bankruptcy group charged Joseph Bankman and Barbara Fried to court for receiving donations worth $26 million in gifts and properties from SBF, despite being aware that the FTX might implode due to the misappropriation of customers’ funds at the time.
In the case file, the prosecutors pointed out that in 2018, SBF referred to Alameda Research as a family business (calling FTX Group his family often). However, the attorneys of SBF’s parents accused the prosecutors, claiming that the lawsuit was a dangerous way to scare the duo into cooperating with them as Bankman-Fried’s trial draws closer.
SBF’s Parent Sued For Misappropriating FTX’s Funds
According to the report, the new development is the latest event that suggests the former administration of the FTX exchange executed many illegal payments while the firm was still active. Also, a court case filed this month revealed that since January and October 2022, SBF had been withdrawing millions of dollars from FTX’s account before the firm’s failure in November of the same year.
On two different occasions, the former FTX CEO reportedly collected $200 million, as revealed by the document. In addition, the filing also reported that SBF siphoned $2.5130 million from FTX’s account to purchase a yacht of Sam Trabucco, the ex-CEO of Alameda, FTX’s trading associate. Six months after the transaction, Trabucco reportedly severed a partnership with the firm.
Meanwhile, in the ongoing court case, the ex-CEO and ex-lover of SBF, Caroline Ellison, was accused of receiving $3.5 million from the collapsed exchange in September last year. Notably, many of the individuals or organizations that received donations either in gifts, cash, or payment for services from Sam Bankman-Fried before the firm collapsed have been told to return all the payments.
The firm reportedly looks forward to clawing back about $18 million in funds from celebrities and organizations, which it paid to run promotional ads for its products and services before it’s collapse in November last year.
Stanford University To Return $5.5 Million Donation
Meanwhile, among the celebrities and organizations that the FTX’s prosecutors sued on Friday for receiving donations from the firm was Stanford University. According to the reports, the tertiary institute received a donation worth $5.5 million from FTX Group, the founder of FTX exchange and Alameda Research. Joe Bankman, SBF’s father, reportedly dished out the funds to the university as he was a faculty member for a long term at the school.
However, following the court charges from FTX’s prosecutors, the Californian tertiary institute decided to return the donations in total. Through its spokesperson, the school stated that it had received the funds from FTX Group primarily for pandemic-related prevention and research studies. He added that they have contacted the lawyers of FTX and have agreed to return the whole funds.
According to the report, Joe Bankman, a tax lawyer, was FTX Group’s senior advisor in charge of the firm’s philanthropic activities. He reportedly received $200,000 monthly for his service at the firm before the collapse. Also, Joe was accused of conducting the whole $5.5 million donation to Stanford University. Furthermore, Joe has also been indicted for sending funds from FTX and Alameda’s accounts to private accounts on several occasions.
At the moment, the two parents of Sam Bankman-Fried are facing allegations of deliberate involvement in siphoning and misappropriation of FTX’s customers’ funds despite being aware that the company was in insolvency status.
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