Sam Bankman-Fried’s parents deny the allegations
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The disgraced CEO of dodgy crypto platform FTX, Sam Bankman-Fried, had to deal with his dad who moaned that his $200,000 salary wasn’t enough, new court documents reveal.
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A lawsuit filed in Delaware by bankrupt FTX claims Joe Bankman and his wife, Barbara Fried, used their influence with their shaggy accused fraudster son to enrich themselves with millions of dollars.
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In January 2022 — just months before FTX imploded — the 68-year-old patriarch allegedly emailed the company to complain he believed his compensation should be closer to $1 million annually.
The Stanford University tax law professor wrote to his son, looping his wife in: “Gee Sam, I don’t know what to say here. This is the first [I] have heard of the 200K a year salary! Putting Barbara on this.”
But big-hearted Sam ensured the couple were given $10 million from FTX’s offshoot, Alameda Research, run by his orgy-loving girlfriend, Caroline Ellison. They were also gifted a $16.4-million luxe home in the Bahamas, the lawsuit claims.
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Lawyers for the complainants said Joe Bankman used his law professor wife to squeeze their son for bigger paydays.
The 71-year-old mom is accused of helping Bankman-Fried “avoid if not violate federal campaign finance disclosure rules” around his numerous political donations.
In addition, the patriarch also allegedly siphoned off $5.5 million for donations to Stanford in an effort to “curry favour” with the university’s executives. He is also accused of “showering” friends and family with gifts.
The California couple have also been accused of assisting in the cover-up of complaints from FTX’s former lawyer.
“[The couple] either knew — or ignored bright red flags revealing — that their son, Bankman-Fried, and other FTX Insiders were orchestrating a vast fraudulent scheme,” the lawsuit claims.
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Their lawyers have denied all wrongdoing, slamming the latest allegations as “completely false.”
In a statement, the couple’s legal eagles said: “This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins. These claims are completely false.
“Mr. (John) Ray and his massive team of lawyers, who are collectively running up countless millions of dollars in fees while returning relatively little to FTX clients, know better.”
Ray is now at the helm of FTX.
Stanford University said it would be returning the funds.
Meanwhile, Bankman-Fried is currently caged in New York City while awaiting his Oct. 3 trial start. He has pleaded not guilty to orchestrating the massive fraud.
The crypto giant he founded filed for bankruptcy in 2022 after a run on deposits revealed an eye-popping $8 billion hole in the company’s accounts. He was charged by federal prosecutors in New York shortly after.
bhunter@postmedia.com
@HunterTOSun
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