Sam Bankman-Fried’s Parents Seek Dismissal in FTX Lawsuit
The parents of Sam Bankman-Fried, the founder of FTX, are seeking to have the lawsuit filed against them dismissed. They argue that they were not involved in any alleged fraudulent transfers or breaches of fiduciary duties.
Parents’ Motion to Dismiss
Joseph Bankman and Barbara Fried, represented by their lawyers, filed a motion on Monday to dismiss the lawsuit. They claim that the plaintiffs are trying to exploit their relationship with Bankman-Fried.
No Executive Roles or Significant Involvement
The attorneys representing Bankman and Fried state that neither defendant held executive roles or had significant interactions with the debtor entities. Their relationship with the debtors is not a valid reason for legal action.
FTX Lawsuit Allegations
The FTX lawsuit, filed in September 2023, alleges fraudulent transfers, breaches of fiduciary duties, and other misconduct. The plaintiffs claim that Bankman and Fried used their access and influence to benefit themselves at the expense of the debtors.
Denial of Allegations
Bankman and Fried deny these allegations. They argue that Bankman’s familial relationship and communications with Bankman-Fried did not make him a de facto director of Alameda or FTX US.
New FTX Management Seeks Capital
FTX’s new management is attempting to recover funds disbursed prior to its Chapter 11 filing. Legal action has been initiated against Kives and Bybit Fintech to recover millions of dollars worth of investments and assets.
Hot Take: Concerns Over Dropped Charges
US prosecutors have decided not to pursue certain charges against Sam Bankman-Fried, including allegations of foreign bribery and bank fraud. However, the dropped charge of unlawful political donations has raised concerns within the crypto community.
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