Lawyer Exposes FTX Founder’s Parents in Crypto Scandal

Crypto lawyer John Deaton raised alarming questions concerning the role of Sam Bankman-Fried’s (SBF) parents in the dramatic collapse of FTX last year. The lawyer has pointed out numerous instances where the disgraced founder’s parents benefited financially from the crypto exchange before its bankruptcy, raising suspicions of their involvement in the alleged fraud.
SBF’s Parents Involved In FTX Crash
Deaton took to Twitter to expose the details of Bankman-Fried’s parents’ involvement in FTX’s financial affairs. According to Deaton, Bankman-Fried had transferred $10 million to an FTX account under his name, which he then gifted to his father, Joseph Bankman.
SBFraud gifted $10 million in an FTX account in his name and then immediately transferred the money to his father. SBFraud’s dad has long taught corporations and tax law at Stanford Law School for decades. Have you seen all the shell corporations his dad helped him set up? His… https://t.co/nkMplVdsfv
— John E Deaton (@JohnEDeaton1) August 14, 2023
This gift was made in 2021, taking advantage of a lifetime estate and gift tax exemption, which allowed the entire amount to be transferred virtually tax-free.
The funds for this gift reportedly came from a loan provided to Bankman-Fried by Alameda Research, FTX’s sister firm. This transaction further entangled his father, Joseph Bankman, in the crypto empire’s affairs. Joseph, a Corporations and Tax Law professor at Stanford Law School, allegedly helped his son establish shell companies, which were used to perpetuate the fraud associated with FTX.
Political connections are drawn into question
Moreover, Deaton emphasized the political connections of the Bankman-Fried family, as Joseph Bankman had previously supported Democratic Senator Elizabeth Warren. Bankman-Fried’s mother, Barbara Fried, operates a political action committee (PAC) that assists Democrats.
Deaton raised concerns about the FTX founder’s proximity to the current chair of the Securities and Exchange Commission (SEC), Gary Gensler, a lifelong Democrat. He questioned whether the millions of dollars influenced Gensler‘s meetings with Bankman-Fried, who had donated to the Democratic Party.
Bahamas real estate raises eyebrows
Additionally, Deaton pointed out that the FTX founder’s parents owned real estate in the Bahamas, which had been purchased using funds from the now-defunct crypto exchange.
The crypto lawyer questioned why Joseph Bankman was allowed to retain the $10 million gifted with FTX funds and why none of the parents faced charges regarding the exchange’s collapse.
As the investigation into the downfall of FTX continues, these revelations cast a shadow on the role of Sam Bankman-Fried’s parents in the affair. The complex web of financial transactions, coupled with the political connections, raises further questions about the extent of the involvement of SBF’s parents in the alleged fraud. However, the ongoing legal inquiry remains to uncover the whole truth.
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure
- SEC to Decide on Six Spot XRP ETF Applications in October
- Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?