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Lawyers representing FTX have disclosed in a court filing that they want to question SBF’s family under oath to find out if they received any funds from the bankrupt crypto exchange. The filing is part of the interim executive’s mission to recover funds lost in the collapse of the crypto exchange that could potentially be used to pay back creditors and users. The filing also wants Bankman-Fried’s family to provide financial documents about their personal wealth. However, they can proceed with any questioning only after U.S. Bankruptcy Judge John Dorsey approves the request.
FTX and Its Relationship with SBF’s Family
Although it has not been expressly proven that SBF’s family received funds from the exchange, they were involved in running the exchange. His father, Joseph Bankman, a Stanford law professor, reportedly gave tax advice to FTX staffers and helped recruit the company’s lawyers. His mother, Barbara Fried, founded a political action committee that took money from FTX. According to the filing, his brother Gabriel Bankman-Fried founded an organization to lobby members of the U.S. Congress from a multimillion-dollar property near the U.S. Capitol. Bankman-Fried’s parents also signed his $250 million bond for his bail. His parent’s home reportedly secures the bond. However, it does not mean that the home’s value correlates to the bail amount’s value.
Family Not Cooperating
The filing notes that Barbara Fried “has ignored the requests altogether” despite requests to cooperate voluntarily. It adds that they have not received meaningful engagement or any response from his brother. On the other hand, his father has been discussing with lawyers who expect to reach a consensual outcome, the filing said.
After Bankman-Fried’s arrest, it was revealed that his parents’ $16.4 million home in the Bahamas was meant for FTX staff.