Sam Bankman-Frieds Parents File Motion To Block FTX From Recovering Assets Transferred to the Couple

The parents of former FTX CEO Sam Bankman-Fried are asking the court to dismiss the lawsuit accusing them of exploiting their access and influence within the now-bankrupt crypto exchange to enrich themselves.

In September, the FTX estate sued Stanford Law School professors Joseph Bankman and Barbara Fried to hold them accountable for their alleged misconduct and to recover purportedly millions of dollars in fraudulently transferred and misappropriated funds.

Reads the complaint,

Despite knowing or blatantly ignoring that the FTX Group was insolvent or on the brink of insolvency, Bankman and Fried discussed with Bankman-Fried the transfer to them of a $10 million cash gift and a $16.4 million luxury property in The Bahamas.

In a new filing submitted to the bankruptcy court on Monday, the couple sought the dismissal of the case, citing that the lawsuit merely capitalized on the fact that their son was the founder and former executive of FTX.

The couple says the complaint itself alleges that the $10 million gift from Sam Bankman-Fried was transferred as early as October 2021, when FTX was still considered not only solvent but also extremely successful.

They also say that they never used the $16.4 million luxury property known as the “Blue Water” as their primary or exclusive residence.

Plaintiffs fraudulent transfer claims, both actual and constructive, concern two alleged transactionsBlue Water and the $10 million gift. Both alleged transactions occurred at a point in time when Debtors valuation exceeded approximately $40 billion.

Plaintiffs have failed to plausibly allege actual intent to hinder, delay or defraud, as required for an actual fraudulent transfer claim, or Debtors insolvency, as required for a constructive fraudulent transfer claim.

Don’t Miss a Beat Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

This article was originally reported on The Daily Hodl.