Sam Bankman-Fried’s Family Can Testify under Oath
2023.01.26 14:41
Sam Bankman-Fried’s Family Can Testify under Oath
By Tiffany Smith
Budrigannews.com – According to reports, lawyers for FTX in the bankruptcy court have argued that the immediate family of former CEO Sam Bankman-Fried ought to be questioned regarding their personal wealth.
Bloomberg reported on January 26 that FTX’s lawyers requested permission from Judge John Dorsey in the District of Delaware to question SBF’s parents, Barbara Fried, and Gabriel Bankman-Fried, respectively, under oath about any financial benefits they may have received from the exchange. In an effort to locate assets connected to the bankrupt crypto exchange, other executives of FTX may reportedly be subjected to the same line of questioning.
During the FTX controversy, Stanford Law School law professor Joseph Bankman canceled at least one of his classes. He reportedly advised the employees of the exchange on tax matters and suggested hiring the company’s legal team. Bankman and his wife, Barbara Fried, who is also a Stanford law professor, contributed equity from their California home to guarantee SBF’s $250 million bail.
Gabriel Bankman-Fried, Bankman-Fried’s brother, helped found the advocacy group Guarding Against Pandemics in 2020, which aims to support legislation to stop future pandemics like COVID-19. SBF and his brother also personally contributed to a few campaigns, and some of his funds went directly to the group that supported federal lawmakers.
If Judge Dorsey grants subpoenas, it is unknown whether questioning the family members would result in the discovery of “hidden” FTX funds by investigators. In the midst of his son’s criminal case, Joseph Bankman is said to have already hired an attorney. However, testimony in this case would fall under FTX’s bankruptcy proceedings.
There are eight charges against Sam Bankman-Fried, including committing campaign finance violations and wire fraud. SBF has been confined largely to his parents’ house since his arraignment in the United States after being extradited from the Bahamas. His trial is scheduled to begin in October.
