Sam Bankman-Fried Funding Defense with $10M of Stolen Alameda Money Gifted to His Father: Lawsuit
Sam Bankman-Fried paid his legal defense team $10 million using funds that were stolen from FTX’s sister hedge fund, Alameda Research — and which had been gifted to the 31-year-old crypto crook’s father, a new lawsuit alleges.
The complaint — filed in Delaware bankruptcy court on Thursday — divulged that a so-called “Bankman Gift Transfer” for $10 million was made from Bankman-Fried’s FTX account “to his father’s personal account on the FTX US exchange.”
“On information and belief, Bankman-Fried’s father has been using this ‘gift’ to finance Bankman-Fried’s criminal defense,” the documents stated.
The complaint confirmed previous reports that Bankman-Fried was using the “large monetary gift” he sent to his father, longtime Stanford University law professor Joseph Bankman, to pay for his expensive legal defense.
The Post has reached out to Joseph for comment.
“In an email exchange, Bankman-Fried and his father discussed structuring the $10 million gift as a loan from Alameda to Bankman-Fried,” the court documents said, suggesting that the money was not actually a present from son to father.
FTX lawyers’ also noted in the filing that “the debtors have been unable to identify any promissory note, long agreement or other indication that the funds were not simply taken from Alameda by Bankman-Fried to enrich his family.”
The court documents were filed by FTX against a handful of its executives, including Bankman-Fried, co-founder Gary Wang, engineering director Nishad Singh and former Alameda CEO Caroline Ellison.
It’s seeking $1 billion in damages, claiming the company’s so-called philanthropic organization was misappropriated by FTX’s bosses.
Source:New York Post
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