Joseph Bankman and Barbara Fried, Parents of SBF Founder, Attempt to Dismiss FTX Clawback Lawsuit

Sam Bankman-Fried’s Parents Seek Dismissal of FTX Clawback Lawsuit

Allan Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried, have requested the court to dismiss the clawback lawsuit against them. They argue that they were unaware of the issues at FTX and did not intentionally withdraw funds before the collapse in November 2022.

Joseph Bankman & Barbara Fried File Motion to Dismiss

Joseph Bankman and Barbara Fried have filed a motion to dismiss the lawsuit in a U.S. bankruptcy court in Delaware. They contend that the lawsuit is based solely on their son’s association with FTX and deny being insiders or having knowledge of the company’s problems.

Bankman-Fried’s Father Offers Legal Advice, Denies Involvement in FTX Operations

Joseph Bankman stated that he provided legal advice to his son, including tax advice on a $10 million gift. However, he asserts that he was not involved in FTX’s operations or management.

Bahamas Property and Political Donations Disputed

Regarding the Bahamas property mentioned in the lawsuit, Bankman and Fried claim it was not their primary residence but rather a shared FTX property used by employees temporarily. They also deny transferring political donations from FTX to their organization.

FTX Lawsuit Alleges Mismanagement by Insiders

FTX filed a lawsuit against Joseph Bankman and Barbara Fried seeking to recover funds and gifts received from company executives. Previous reports indicated that FTX operated as a “family business” benefiting insiders, with Bankman contributing to alleged misrepresentations and cover-ups.

Hot Take: Sam Bankman-Fried’s Parents Defend Themselves in FTX Clawback Lawsuit

Allan Joseph Bankman and Barbara Fried have responded to the clawback lawsuit filed against them by FTX. They argue that they were not involved in FTX’s operations, were unaware of its problems, and did not intentionally withdraw funds before the collapse. The outcome of this legal battle will determine whether they are held liable for the alleged mismanagement and misconduct at FTX.