The Sam Bankman Fried (SBF) trial is now a family affair as the accused parents are now suspected of also being involved with their son’s activities of defrauding the multi-billion crypto exchange. SBF’s parents, Joseph Bankman and Barbara Fried have offered their son unwavering support as he faces multiple counts of money laundering and fraud in connection with the collapse of FTX.
The Stanford professors are now accused of misappropriation and misdeeds of company funds of the flannel crypto giant in the new suit. In the fast-paced world of crypto, where fortunes can be made or lost in the blink of an eye, one story stands out as a true family affair.
Bankman and Fried also Involved
As SBF was popularly known, “The youngest billionaire” rocketed from a job at Wall Street to launch his own crypto empire, which has become a pivotal factor in the crypto economy. SBF relied on the expertise of his already successful parents in running the company.
His father, Joseph, played a role in various FTX fields, while his mother, Barbra, prided herself as her son’s partner in crime and seemed to have a hand in the company affairs.
According to reports, SBF exploited their FTX access to use the company’s assets for personal gains. The new suit filed on Monday outlines how the CEO’s parents were involved in the exchange’s affairs until its collapse. SBF responded by stating that his parents did not contribute to any relevant aspects of his company; however, the prosecution asserts that they were very much involved.
SBF defends his family’s participation in the collapse of FTX
According to the complaint, Joseph Bankman was the proverbial adult and worked with the managers and executives. He enjoyed privileges such as expensive hotels, private jets, unearned gifts, and the Super Bowl commercial before the collapse.
On the other hand, Fried was the CEO’s advisor, especially on his political contributions, influencing her son to direct millions to the political action committee where she acted as the president.
SBF’s father is also accused of asking for exorbitant sums as salary. In 2022, he was unsatisfied with the $200k he received as an annual salary, stating he wanted $1M in a year, placing the young CEO between a rock and a hard place.
SBF’s parents took care of the ‘mature’ part of the business while their son was the face of the company. The prosecution coined their persuasive tale of the crumbled crypto empire as a Family Business.
SBF’s parents played a huge role in ensuring their son’s release on bond when he was accused of international criminality in December 2022. The accused stayed with his parents at Palo Alto, who secured the $250 million bond with their house where he was confined.
SBF was jailed in August after violating his bail terms by attempting to interfere with the witnesses. He apparently shared a witness’s diary with a reporter. He also tried to pay off other witnesses, leading to a revocation of his bail and his placement in custodial sentence pending trial.
SBF had also used a private network to mask his internet activity, which he claimed to use to watch NFL games.
The new suit has portrayed SBF’s parents differently as joint perpetrators in his alleged crimes. The prosecution strides are dedicated to protecting the creditors and investors who lost millions once the exchange burst. The new complaint states that the parents took advantage of their access to the company to misappropriate the company’s funds.
The parent’s lawyers have commented on the complaint, saying it is a dangerous attempt to intimidate them days before their son’s trial. The case’s outcome is still unknown; however, the new suit successfully paints the accused parents as swindlers equally culpable as their son.
