The parents of former FTX CEO Sam Bankman-Fried (SBF) have categorically denied any involvement in fraud or mismanagement within the FTX organization.
The lawsuit, filed in September 2023, accused SBF of misusing funds and directing donations for personal gain, prompting a strong defense from his parents.
SBF’s parents, represented by a lawyer, emphasized their lack of executive positions at FTX and Alameda Research, the two companies at the center of the controversy.
The defense argued that SBF’s parents cannot be held liable for their son’s actions as FTX CEO, pointing out that the lawsuit only addresses limited company interactions.
One of the lawsuit’s central claims is that SBF’s parents purchased a $16.4 million property in the Bahamas. The defense refuted this allegation, claiming that the referenced property was primarily used by the FTX team and employees.
The attorney clarified that numerous FTX and Alameda properties were located in the Bahamas, serving as residences and workspaces for the involved parties.
The lawsuit also claimed that SBF’s parents directed significant donations for personal gain, including those to Stanford University.
In response, the defense claimed that there is no evidence of personal gain from these donations, emphasizing the legality of their contributions.
SBF’s parents sought dismissal of the lawsuit, claiming their innocence and refuting all allegations of wrongdoing.
The legal defense argued that they were not directly involved in FTX and Alameda Research’s day-to-day operations or decision-making processes.
