Family Feud: Ex-FTX CEO's Parents Alleged in Multi-Million Dollar Salary Scandal
Summary:
Joseph Bankman, father of ex-FTX CEO Sam Bankman-Fried (SBF), has raised a family dispute over his income at FTX US. Allegedly, Bankman and Barbara Fried, SBF’s parents, misappropriated millions from the exchange. Despite a contract for a $200k per annum salary following his leave from Stanford Law School, Bankman claimed he expected a million dollars annually. The dispute led to SBF reportedly providing his parents with significant funds and properties. This saga is the latest event in FTX's ongoing bankruptcy case, with SBF also facing 12 criminal charges.
In a recent turn of events, Joseph Bankman, whose son Sam Bankman-Fried once held the reins at FTX as CEO, voiced concerns over the salary he was earning during his tenure at FTX US, fueling a family dispute. The matter was revealed in a lawsuit filed on September 18th, in the US Bankruptcy Court for the District of Delaware. Bankman, along with Barbara Fried, are alleged by FTX defaulters to have wrongly redirected millions through their interference in the business of the exchange. As per the court files, his contract with FTX US supposedly ensured an annual wage of $200,000, subsequent to his leave from Stanford Law School in December 2021. In a surprising turn, Bankman seemed unaware of his contractual conditions, asserting to both his employer and his son his expectation of a million-dollar annual income. The suit stipulated that Bankman had looped in Barbara, implying that Bankman-Fried's mother might have been able to convince her son to go ahead with the salary adjustments.
The allegations claimed that Bankman's persistence reaped benefits, with his son later transferring $10 million from Alameda, a property in The Bahamas valued at $16.4 million paid for by FTX Trading, giving them the capacity to charge approximately $90,000 to FTX Trading in the island nation, and providing options to acquire shares in the company. The legal representatives of Bankman and Fried were contacted by Cointelegraph, but no response was obtained by press time.
The legal pursuit instigated by the defaulters is the most recent in the bankruptcy proceedings surrounding FTX and its various subsidiary companies, which commenced in November 2022. Bankman-Fried is now also contending with a dozen criminal accusations, which are scheduled to be addressed in two separate trials in October 2023 and March 2024.
His bail was cancelled by a federal judge in August, leading him to be predominantly confined to the Metropolitan Detention Center in Brooklyn prior to his trial in October. On September 19, an appeal for Bankman-Fried's release from incarceration to allow for trial preparation was handled by a panel of three judges, with reference to the absence of internet resources and First Amendment problems.
Published At
9/19/2023 6:36:49 PM
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