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FTX would like to speak with some of its former executives to discover assets utilised to compensate the exchange platform’s harmed creditors as part of its investigation into the now-collapsed exchange.
FTX Lawyers Pursues Outstanding Assets
According to Bloomberg, FTX CEO’s father Joseph Bankman, provided tax guidance to FTX workers, whilst his brother Gabriel participated in political lobbying from a luxurious residence in Washington, D.C.
Barbara Fried, the wife of Bankman, reportedly got funds from FTX for the political action group Mind the Gap. In 2022, Fried spent a substantial sum supporting democratic candidates.
Lawyers have lately found roughly $5 billion to reimburse subscribers, but they are still aggressively pursuing outstanding FTX assets. Additionally, the company’s new CEO, John J. Ray III, stated that a new task force was looking into restarting the exchange to get the required liquidity to repay clients.
Brothers Lobbied For Pandemic Prevention
Gabriel is a former director of a non-profit and political action committee focused on preventing pandemics. Diverse investments were made with FTX money, such as a $12 million donation to a California ballot measure to help track new viruses and the sponsorship of the political campaign of an Oregon biosecurity specialist.
Their PAC, Protect Our Future, poured $28 million towards Democratic candidates and causes that year. The non-profit Guarding Against Pandemics lobbied for the new pandemic strategy with $1 million dollars.
1)Since it’s been getting more attention recently… What are my views on politics and policy?
— SBF (@SBF_FTX) May 25, 2022
Gabriel Bankman-Fried resigned as head of Guarding Against Pandemics after the FTX collapsed in November 2022. The man is assumedly 100% committed to preventing pandemics, but Sam isn’t.
Much More About Assets Than Biological Ties
The family’s financial dealings with money earned from the alleged scamming of FTX clients are at the heart of the motion to subpoena them, rather than their biological ties to Sam Bankman-Fried.
Lawyers for FTX claimed that Bankman-Fried allowed his parents to live in a Bahamian home worth $16.4 million despite knowing that it belonged to FTX. Gabriel purchased a lavish home in the nation’s capital with money obtained illegally. A representative for the parents said in December 2022 that they were working on handing over the property.
To avoid dealing with the FTX bankruptcy case, Joseph Bankman-Fried has retained counsel for the criminal case against his older son. According to reports, his attorney is currently negotiating with FTX’s legal team.
Legal counsel for FTX would need a subpoena order from Judge Dorsey to question Sam Bankman-Fried’s relatives until the parties settle on their own.