FTX founder’s parents sued, accused of stealing millions from crypto exchange

Debtors of the insolvent cryptocurrency exchange FTX have introduced action versus the moms and dads of FTX creator Sam Bankman-Fried, alleging that they abused millions of dollars through their involvement in the exchanges business.The counsel for FTX debtors and debtors-in-possession, represented by the law company Sullivan & & Cromwell, on Sept. 18 filed a suit against SBFs parents, Joseph Bankman and Barbara Fried.The plaintiffs argued that Bankman and Fried exploited their gain access to and influence within the FTX empire to enrich themselves at the cost of the debtors in the FTX bankruptcy estate. Bankman also held executive positions on the FTX Groups management group, the debtors argued.SBFs mother– likewise a Stanford Law School professor– was actively included in FTXs political donations, the complainants composed. Bankman also siphoned off FTX Groups cash to cover expenses consisting of privately-chartered jets and $1,200 per night hotel remains, the plaintiffs alleged.Related: FTX reinforces claims portal security measures following cyber breachBy draining pipes FTX Groups funds to their benefit, Bankman and Fried either understood or disregarded red flags revealing that their child was orchestrating a deceitful plan to promote their personal and charitable interests at debtors cost, the plaintiffs said.