The parents of former FTX CEO Sam Bankman-Fried are asking the court to dismiss the lawsuit accusing them of abusing their access and influence within the now-bankrupt crypto exchange to enrich themselves.
In September, the FTX estate sued Stanford Law School professors Joseph Bankman and Barbara Fried to hold them accountable for their alleged misconduct and to allegedly recover millions of dollars in fraudulently transferred and embezzled funds.
Reads the complaint,
“Despite knowing or blatantly ignoring that the FTX Group was insolvent or on the brink of insolvency, Bankman and Fried discussed with Bankman-Fried the transfer to them of a $10 million cash gift and a $16 luxury real estate .4 million in the Bahamas.”
In a new filing Monday in bankruptcy court, the couple asked to dismiss the case, arguing that the lawsuit merely built on the fact that their son was the founder and former director of FTX.
The couple says the complaint itself alleges that Sam Bankman-Fried’s $10 million gift was transferred as early as October 2021, when FTX was still considered not only solvent but extremely successful.
They also say they never used the $16.4 million luxury property known as the “Blue Water” as their primary or exclusive residence.
“Plaintiffs’ fraudulent transfer claims, both factual and constructive, relate to two alleged transactions: Blue Water and the $10 million gift. Both alleged transactions occurred at a time when the debtors’ valuation exceeded approximately $40 billion.
Plaintiffs have failed to establish an actual intent to impede, delay, or defraud, as required for an actual fraudulent transfer claim, or the insolvency of debtors, as required for a constructive fraudulent transfer claim.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on TweetFacebook and Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney