The managers of bankrupt crypto exchange FTX sued the parents of co-founder and former Chief Executive Officer Sam Bankman-Fried to "recover millions of dollars in fraudulently transferred and misappropriated funds."
Allan Joseph Bankman and Barbara Fried exploited their access and influence within FTX to "enrich themselves, directly and indirectly, by millions of dollars," at the expense of the debtors and creditors, the company said in a Monday
Bankman and Fried are renowned legal scholars and taught at Stanford Law School. Bankman is an expert on taxes, while Fried's specialty is ethics.
Despite "knowing or blatantly ignoring" that FTX was insolvent or on the brink of insolvency, Bankman and Fried discussed with Bankman-Fried the transfer to them of a $10 million cash gift and a $16.4 million luxury property in the Bahamas, the filing said. The pair also "pushed for tens of millions of dollars in political and charitable contributions."
The lawsuit was filed in the U.S. District Court for the District of Delaware.
