FTX sues SBF's parents to recover transferred and misappropriated funds

ChainCatcher news, according to CoinDesk, FTX's bankruptcy estate is suing SBF's parents Joseph Bankman and Barbara Fried to "recover millions of dollars that were fraudulently transferred and misappropriated." The company requested the court in a filing on Monday to determine that the FTX bankruptcy estate is entitled to damages and to return any property or payments made to his parents.

The document states that FTX Trading paid $18,914,327.82 (including taxes and costs) to Blue Water, and also paid various fees related to Blue Water totaling over $90,000. Bankman and Fried own Blue Water. The document also states, "Bankman is well-versed in tax law and has a unique understanding of the chaotic corporate structure of the FTX group, which enabled him to facilitate the transfer of a cash gift totaling $10 million from Alameda Ltd. funds to himself and Fried."

The lawsuit claims that Bankman assisted other FTX insiders in using FTX group funds for donations and helped cover up a whistleblower complaint from September 2019. Barbara Fried was the "point person" for SBF's political donation strategy. Additionally, she leveraged her "connections and influence to profit for MTG (Mind the Gap), a political action committee she co-founded in 2018 that only accepts independent expenditures, where she served as chair and president." The document states that at Barbara Fried's explicit request, "tens of millions of dollars" were donated to causes supported by MTG.