Concerning the collapse of FTX, a lawyer discloses suspicious ties and transactions involving the parents of Sam Bankman-Fried.
John Deaton, a crypto lawyer, raised alarming concerns about the role of Sam Bankman-Fried’s (SBF) parents in last year’s dramatic collapse of FTX.
The attorney has cited numerous instances in which the disgraced founder’s parents benefited financially from the crypto exchange before its bankruptcy, raising suspicions about their involvement in the alleged fraud.
SBF’s Parents Involved In FTX Crash
Deaton utilized Twitter to reveal the involvement of Bankman-Fried’s parents in FTX’s financial affairs. According to Deaton, Bankman-Fried deposited $10 million into a personal FTX account, which he then gifted to his father, Joseph Bankman.
SBFraud gifted $10 million in an FTX account in his name and then immediately transferred the money to his father. SBFraud’s dad has long taught corporations and tax law at Stanford Law School for decades. Have you seen all the shell corporations his dad helped him set up? His… https://t.co/nkMplVdsfv
— John E Deaton (@JohnEDeaton1) August 14, 2023Taking advantage of a lifetime estate and gift tax exemption, this gift was made in 2021, allowing the entire amount to be transferred virtually tax-free.
This gift was reportedly funded by a loan provided to Bankman-Fried by Alameda Research, an affiliate of FTX. This transaction further entangled Joseph Bankman, his father, in the crypto empire’s affairs.
Joseph, a professor of Corporations and Tax Law at Stanford Law School, allegedly assisted his son in establishing shell companies that were used to perpetuate the FTX deception.
Political Ties Are Called Into Doubt
Deaton also highlighted the political ties of the Bankman-Fried family, as Joseph Bankman had previously supported Democratic Senator Elizabeth Warren. Barbara Fried, the mother of Bankman-Fried, administers a Democratic political action committee (PAC).
Deaton expressed concern regarding the founder of FTX’s proximity to Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC) and a dedicated Democrat. He questioned whether the millions of dollars influenced Gensler’s meetings with Democratic Party donor Bankman-Fried.
Bahamas Real Estate Elicits Surprise
In addition, Deaton noted that the FTX founder’s parents owned property in the Bahamas that was purchased with funds from the now-defunct cryptocurrency exchange.
The crypto lawyer questioned why Joseph Bankman was allowed to retain the $10 million gifted with FTX funds and why none of the parents faced charges regarding the exchange’s collapse.
As the investigation into FTX’s demise continues, these revelations cast doubt on the involvement of Sam Bankman-Fried’s parents. The intricate web of financial transactions and political ties raise additional concerns regarding the extent of SBF’s parents’ involvement in the alleged fraud. However, the ongoing legal investigation must still uncover the complete truth.
