MEXCSBF’s Parents Joseph Bankman & Barbara Fried Seek To Dismiss FTX Clawback Lawsuit
Sam Bankman-Fried’s parents Allan Joseph Bankman and Barbara Fried have requested the court to dismiss the clawback lawsuit against them claiming that they did not know about the problems at the crypto exchange FTX or deliberately tried to take benefit of the conditions and pulled money out before the collapse in November 2022.
Joseph Bankman & Barbara Fried Files to Dismiss Lawsuit
Joseph Bankman and Barbara Fried have asked a U.S. bankruptcy judge to dismiss the lawsuit, according to a memorandum of law filed in the Delaware bankruptcy court. They rejected claims of being insiders who pulled money from FTX before it collapsed.
They printed out that FTX’s lawsuit is merely dependent on the fact that their son was a founder and executive of FTX. Also, they rejected claims that they were insiders at the company or were aware of problems that led to its collapse.
Joseph Bankman said he offered legal advice to his son, including tax advice on the $10 million gift that Bankman-Fried gave to his parents. However, he was not related to FTX operations and management, according to the filing.
Regarding the Bahamas property in the lawsuit, Bankman and Fried said that it was not their “primary or exclusive residence,” but instead a shared FTX property that was also used by FTX employees as a temporary residence and workplace. Furthermore, she denied transferring FTX political donations to her organization Mind the Gap, saying she never knew how any political donations from the company were sourced or structured.
FTX filed a lawsuit against Sam Bankman-Fried’s parents Joseph Bankman and Barbara Fried to clawback money and other gifts they received from the executives of the company.
Earlier reports and testimonies revealed that FTX Group was indeed a self-described “family business,” run to benefit a group of insiders. Bankman as an advisor played a key role in perpetuating a “culture of misrepresentations and gross mismanagement.” He even helped cover up allegations against the firm and its insiders.
Also Read:
- A New 19b-4 Filing Seeks Options Trading for spot Bitcoin ETFs, Will the SEC Allow?
- XRP Lawyer John Deaton To Attend Coinbase & SEC’s Face-Off
- Ethereum Price Dominance Over Bitcoin Grows, Exchange Supply At All-Time Low
- Trader Predicts Dogecoin November Breakout as Murad’s Memecoin Holdings Drop 59% to $27.5 Million
- Whales Open $71 Million ASTER Short After CZ’s “Buy and Hold” Reveal
- Expert Warns XRP Investors of “ Extremely Mediocre” Growth Next to Solana’s 100x Activity Surge
- Michael Saylor Teases 13th Straight Bitcoin Buy as Trump Unveils New U.S.-China Trade Deal
- Shiba Inu Team Launches Network Upgrade for Shibarium Amid Fresh Hack Concerns
- ZKsync Price Surges 90% on Vitalik’s Comments: What’s Next?
- $100K or $125K? Crypto Analysts Split on Bitcoin Price Prediction Despite U.S.–China Trade Deal
- Pi Coin Price Prediction After AI Investment Announcement – Is a Bull Run Ahead?
- How High Can Zcash Price Go In November?
- SOL ETFs Records $44.4M in 4 Days: What’s Next For Solana Price?
- Why Is TAO Price Skyrocketing Today?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
