Lawyers for the parents of ex-CEO FTX rejected the company’s claims


Legal representatives of the parents of ex-CEO FTX Sam Bankman-Fried called the claims made by the exchange against their clients unlawful. The Block writes about this.

Lawyers Sean Hecker and Michael Tremonte, representing Joseph Bankman and Barbara Fried, respectively, provided commentary to the publication.

“This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins. These allegations are completely false,” the lawyers said.

The day before, FTX, undergoing bankruptcy proceedings, filed a lawsuit against Bankman and Fried. The exchange intends to recover “millions of dollars” worth of allegedly misappropriated funds and property to add to the bankruptcy estate.

According to the statement, the defendants used their influence in the company for personal gain. The lawsuit does not specify the total amount of claims, but includes property received by the parents in the Bahamas worth $18 million, donations to Stanford University worth $5.5 million and other payments and transfers of property.

“Mister Ray and his vast team of lawyers, who collectively receive countless millions of dollars in fees while reimbursing FTX clients for relatively little, know that this is not the case,” Bankman and Fried said.

In a March presentation, exchange representatives estimated the total deficit of funds to cover creditors’ claims at $8.7 billion, of which about $1.6 billion is in Bitcoin. In June, new management at FTX said it had returned $7 billion in liquid assets.

Let us recall that journalists found out the role of Bankman-Fried’s parents in building the FTX business empire.

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