FTX legal team calls for Sam Bankman-Fried's family to answer questions under oath: Report

Lawyers representing FTX successful bankruptcy tribunal person reportedly argued that erstwhile CEO Sam Bankman-Fried’s contiguous household should look questioning regarding their idiosyncratic wealth.

According to a Jan. 26 study from Bloomberg, FTX’s lawyers requested Judge John Dorsey successful the District of Delaware let them to question Joseph Bankman, Barbara Fried, and Gabriel Bankman-Fried — the father, mother, and member of SBF, respectively — nether oath astir immoderate fiscal benefits they whitethorn person received from the exchange. Other FTX executives could reportedly beryllium taxable to the aforesaid enactment of questioning successful an effort to way down assets tied to the bankrupt crypto exchange.

Joseph Bankman, a instrumentality prof astatine Stanford Law School who cancelled astatine slightest 1 of his classes amid the FTX controversy, reportedly acted arsenic a taxation advisor to the exchange’s employees and made recommendations regarding hiring the company’s ineligible team. Together with his woman Barbara Fried — besides a prof of instrumentality astatine Stanford — Bankman helped warrant SBF’s $250-million bail with equity from their California home.

In 2020, Bankman-Fried’s member Gabriel helped recovered Guarding Against Pandemics, an advocacy radical aimed astatine supporting authorities to forestall aboriginal pandemics similar COVID-19. Some of SBF’s funds went straight to the group, which supported national lawmakers, and helium and his member besides personally contributed to definite campaigns.

It’s unclear whether questioning the household members, should Judge Dorsey o.k. issuing subpoenas, would effect successful ‘hidden’ funds associated with FTX being discovered by investigators. Joseph Bankman has already reportedly hired an attorney amid his son’s transgression case, but grounds present would autumn nether FTX’s bankruptcy proceedings.

Related: Judge slams senators’ missive against FTX lawyers arsenic ‘inappropriate’

Sam Bankman-Fried faces 8 transgression counts including ligament fraud and violations of run concern laws. Since his arraignment successful the United States upon being extradited from the Bahamas, SBF has mostly been confined to his parents’ home, with his proceedings scheduled to statesman successful October.