The FTX tragedy appears to have become more personal, as the bankrupt stock exchange’s legal advisers are now seeking to drag out members of the founder’s family and speed up how to make it prosperous.
In a court filing, FTX lawyers asked Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, to testify under oath and produce financial papers about their personal fortunes as part of the company’s efforts to recover funds that could be used to pay off debts.
Gabriel, the brother of former FTX CEO Bankman-Fried, will also be questioned in court about the financial benefits he may have received from the company.
The SBF, although cooperative to the point of spending the rest of his life in prison, has neglected to provide federal prosecutors with all the necessary information about the money he diverted, leading to the current situation.
Image: Euronews
Lawyer Seeks Answer From SBF Family If Received Money From FTX
In light of claims that FTX transferred billions of dollars in investor cash to support the Alameda Research trading unit, federal authorities have accused him of fraud. SBF entered a plea of not guilty.
According to reports, other FTX executives may be subject to similar inquiries in an effort to locate assets related to the bankrupt cryptocurrency exchange.
Sources also said that Bankman-Fried’s mother provided tax advice and recruitment assistance to FTX personnel.
FTX former CEO, Sam Bankman-Fried. Image: CNA.
Reportedly, his father was a tax advisor to the company’s employees and made recommendations for the appointment of the company’s legal team.
Of course, Gabriel founded a lobbying group and housed its operations in a multi-million dollar mansion not far from the US Capitol.
It has been stated that his mother and sister are not helping the investigation that is currently underway at FTX.
Reuters reported in November that Bankman-Fried’s parents were the signatories to a $16.4 million home in the Bahamas, designated in property records as a “vacation home.”
FTX Owes Creditors Thousands of Money
SBF faces eight criminal counts, including violating campaign finance regulations and wire fraud. Since his extradition from the Bahamas to the United States, he has been under house arrest at his parents’ home. The trial is scheduled to begin in October.
After the collapse of the once-powerful cryptocurrency exchange in November, recently released bankruptcy records revealed thousands of creditors that FTX owed funds.
Wall Street stalwarts like JPMorgan and Goldman Sachs are included in the 116-page list of creditors, which also includes companies, charities, individuals, and other institutions.
Crypto total market cap at $996 billion on the daily chart | Chart: TradingView.com
Meanwhile, FTX has resisted a request from the US Department of Justice for an independent investigation into the company’s collapse, admitting that it had conducted a comprehensive review that included members of the SBF family.
FTT, the original token of the FTX cryptocurrency exchange, has increased by 185% in the last 30 days.
At the time of writing, the altcoin is trading for $1,940, down about 22% from its previous price of $2.4.00.
-Featured image: Novel Suspect