In a dramatic flip of occasions, the authorized representatives of Joe Bankman and Barbara Fried, mother and father of crypto mogul Sam Bankman-Fried (SBF), have vigorously responded to FTX’s lawsuit in opposition to them.
In line with a report from The Block, the authorized group of Sean Hecker and Michael Tremonte dismissed FTX’s claims as “utterly false” and raised issues in regards to the lawsuit’s timing simply days earlier than their son’s trial.
FTX Alleges Bankman And Fried Exploited Insider Standing For Private Wealth
The response from Bankman and Fried’s authorized representatives comes after FTX’s lawsuit, which accuses the mother and father of orchestrating elements of FTX’s deception and diverting over $30 million from the corporate.
The failed firm alleges that Bankman and Fried used their insider standing to build up private wealth whereas going through monetary turmoil and eventual collapse in November 2022.
Described as a “harmful try to intimidate” Bankman and Fried, their authorized representatives condemned FTX’s actions as an effort to undermine the jury course of.
They additional criticized FTX CEO Mr. Ray and his group of attorneys, suggesting they know the falsehoods behind the claims.
The lawsuit filed by the trade contends that Bankman, a tenured Stanford Regulation Faculty professor with intensive expertise in tax regulation, took benefit of his insider standing inside FTX.
Bankman allegedly performed a central function in misappropriating billions of {dollars} in buyer and investor funds whereas advising the corporate on authorized and company issues. Fried, Bankman’s home accomplice and a Stanford Regulation Faculty professor, is accused of actively involving herself within the FTX Insiders’ world.
Fried allegedly influenced political contributions made by their son, Bankman-Fried, and the FTX Group, together with donations to organizations comparable to Thoughts the Hole, Inc., a political motion committee she co-founded and chaired.
Lawsuit Alleges Unjust Enrichment And Aiding Fiduciary Breaches
Bankman and Fried’s affect and management over the corporate’s funds have expanded as the corporate confronted insolvency. FTX claims that the mother and father, regardless of being conscious of the corporate’s monetary state, mentioned the switch of great sums and luxurious properties for private achieve.
The authorized motion in opposition to Bankman and Fried contains allegations of intentional and constructive fraudulent switch, breaches of fiduciary duties, aiding and abetting violations of fiduciary responsibility, unjust enrichment, and disallowance of claims.
The plaintiffs search to get better property and property transferred to the defendants and to disallow any claims they held within the chapter proceedings.
Because the authorized battle unfolds, Bankman and Fried’s authorized representatives have vowed to defend their purchasers vigorously and have left the door open for additional authorized actions in opposition to the defendants if essential.
The result of this high-stakes authorized conflict will undoubtedly have far-reaching implications for the way forward for the bankrupt crypto trade and the Bankman-Fried household.
Featured picture from iStock, chart from TradingView.com
