The latest report from Bloomberg claimed that the launch of the FTX exchange was possible because of the prominent ties between the SBF father and mother.
FTX was a popular crypto exchange before November 2022. FTX exchange co-founder and ex-CEO Sam Bankman-Fried (SBF) reportedly misused customers’ money for personal benefits. Following a report from the Coindesk media earlier in November 2022, people became aware of the collapsed financial position of the FTX and its sister firm Alameda Research. Reportedly, $8 billion in funds belonging to FTX clients were missing.
On September 14, 2023, Bloomberg published a report to shed light on the role of SBF’s parent company in the launch of the FTX exchange.
According to the report, SBF’s parents, Joseph Bankman and Barbara Fried, helped SBF with the marketing, advertising and launch of the exchange’s FTX Token (FTT).
Bankman and Fried were well-known personalities at Stanford University. In the past, they taught law school for thirty years. According to the report, SBF would likely have failed to launch the now-bankrupt crypto platform if its parents had not helped SBF launch the FTX exchange.
It is worth noting that after the bankruptcy of the FTX exchange, SBF’s parents denied any role or involvement in the FTX-related activities.
However, reports on the FTX stock exchange on behalf of the investigation revealed that his parents extracted nearly $26 million in profits from the FTX stock exchange in the form of cash, real estate, etc.
FTX and bankruptcy
However, FTX went bankrupt due to its poor financial management and misuse of customer’s money for personal benefits, but ex-CEO SBF of FTX blamed Binance CEO Changpeng Zhao for the whole incident, when he announced that he would lose his FTX token ( FTT) will sell. possessions.
In response, Binance’s CEO suggested that SBF focus on itself rather than others.
Initial investigations showed that SBF was the main culprit behind the entire FTX business, but so far no fraud charges have been proven as SBF’s lawyers are intelligent enough to protect SBF from any blame.
Currently, SBF is in jail, having violated the $250 million bail agreement. He reportedly tried to interfere in the FTX crypto fraud case and tried to convince witnesses to make statements in personal favors in court.
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