A new filing and a twist to the Sam Bankman-Fried/FTX saga. This time, instead of the apple, we get the tree(s). That’s right, Allan Bankman and Barbara Fried, Sam’s parents, are on the chopping block for a number of claims asserted by the FTX bankruptcy trustee.
So what’s happening?
In short, the Bankruptcy Trustee is claiming that Bankman “played a key role in perpetuating [a] culture of misrepresentations and gross mismanagement and helped cover up allegations that would have exposed the fraud committed” by a group at insiders at FTX.” And, together with Fried, siphoned millions out of FTX for their own benefit. Let’s dive in a bit.
Wait, what about Larry David?
Let’s back up a second. Apparently Bankman played a BIG part in FTX management, being considered part of the “Management Team” and acting as a “strategic advisor to and general overseer of the FTX businesses”
Effectively, as alleged, a de facto director. And for this role, he was paid really, really well. I mean, he even got to be in that infamous FTX Super Bowl commercial with Larry David.
Like a parent, Bankman had a lot of control and influence at FTX. But instead of making sure things were done properly, it’s alleged that Bankman both bad conduct and siphoned (with Fried) millions for their personal benefit and the benefit of a number of pet charities and political campaigns.
The Trustee has alleged a host of claims against the pair, including breach of fiduciary duty, and fraudulent transfer. Doesn’t look like the apple falls far from the tree.