FTX Founder’s Parents Seek Dismissal of Lawsuit
FTX founder Sam Bankman-Fried’s parents are attempting to have the lawsuit filed against them by the exchange dismissed. They argue that they were not involved in any fraudulent transfers or breaches of fiduciary duties. In their filing, the lawyers for Joseph Bankman and Barbara Fried claim that the plaintiffs are trying to capitalize on their son’s role in the debtor entities.
The attorneys state that while the defendants did interact with the debtor entities, they never held executive roles. FTX filed the complaint against Bankman-Fried’s parents in September 2023 to recover damages caused by fraudulent transfers and other alleged misconduct.
Family Business?
The plaintiffs argue that Bankman described Alameda as a “family business” and used funds from debtors to purchase a luxury property. Bankman and Fried deny these claims, stating that Bankman’s familial relationship does not make him a de facto director of Alameda or FTX US.
The lawsuit also alleges that Bankman and Fried pushed for political and charitable contributions to boost their professional and social status at the expense of FTX Group. The parents’ lawyers argue that this allegation is of no legal significance as it does not prove any benefit received by Bankman or Fried.
Hot Take: FTX Founder’s Parents Fight Lawsuit Allegations
FTX founder Sam Bankman-Fried’s parents are fighting back against allegations made in a lawsuit filed by the exchange. They argue that they had no involvement in any fraudulent activities or breaches of fiduciary duties. According to their lawyers, the plaintiffs are trying to take advantage of their son’s position within the debtor entities.
The defendants’ attorneys emphasize that although Bankman and Fried had interactions with the debtor entities, they never held executive roles. FTX filed the complaint against Bankman-Fried’s parents to seek damages for fraudulent transfers and other misconduct.
The lawsuit also claims that Bankman and Fried used funds from debtors to purchase a luxury property and made political and charitable contributions to enhance their reputation at the expense of FTX Group. However, the parents’ lawyers argue that these allegations hold no legal significance as there is no proof of any benefit received by Bankman or Fried.
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