Key takeaways:
- FTX has filed a lawsuit against the parents of its co-founder Sam Bankman-Fried, accusing them of misappropriating millions of dollars worth of funds from the company.
- The company alleges that Barbara Fried and Joe Bankman used their “access and influence within the FTX enterprise to enrich themselves” through misappropriated customer funds.
- FTX, now being led by turnaround specialist John Ray, is working to recover the billions of dollars lost in customers’ funds.
FTX, the now-bankrupt crypto exchange giant, has filed a lawsuit against the parents of its co-founder Sam Bankman-Fried, accusing them of misappropriating millions of dollars worth of funds from the company for their personal use and benefit.
The 63-page lawsuit, filed in federal court on Monday, alleges that Barbara Fried and Joe Bankman used their “access and influence within the FTX enterprise to enrich themselves” through misappropriated customer funds.
FTX, now being led by turnaround specialist John Ray, said that company founder Sam Bankman-Fried ran FTX as a “family business” and misappropriated billions in customer funds for the benefit of a small circle of insiders, including his parents.
The lawsuit comes just days before Bankman-Fried’s criminal trial is set to begin over allegations that he defrauded FTX customers and lenders, leading to the company’s stunning collapse last year. Bankman-Fried has pleaded not guilty to the charges.
The company, under a new CEO, has since been working to recover the billions of dollars lost in customers’ funds. FTX’s attorneys, Sean Hecker and Michael D. Miller, have said that they are “confident that the evidence will show that the Bankman-Frieds misappropriated millions of dollars from FTX customers and that the company is entitled to full restitution.”
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