FTX Lawyers to Depose SBF’s Family – SBF’s Nother Not Co-operating

If the catastrophe in cryptocurrency prices in the first half of 2022, combined with the Terra Luna crash, weren’t enough to jolt the market, the FTX debacle in the latter stages of last year undoubtedly brought more anguish for the sector.

The FTX saga, however, continues and in the latest development, according to court documents cited by Bloomberg, FTX wants to ask Sam Bankman-Fried’s family whether they got any financial advances from the insolvent cryptocurrency exchange.

FTX’s attorneys asked Judge John Dorsey in the District of Delaware to grant their request of questioning Joseph Bankman, Barbara Fried, and Gabriel Bankman-Fried — SBF’s parents, mother, and brother, respectively — under oath about any financial aid they may have received from the exchange.

They should provide financial records about their individual wealth, according to FTX lawyers, as part of the company’s mission to recover funds that could be used to pay back creditors, they claimed in the filing.

SBF’s mother, Barbara Fried, “has ignored the requests altogether,” Coindesk reported. “The debtors have not received meaningful engagement or any response from [former chief engineer Nishad] Singh or Mr. Gabriel Bankman-Fried,” the report added. 

“The Debtors and their advisors have been working tirelessly and nonstop over the last 70 plus days to implement controls, recover and protect estate assets. Key questions remain, however, concerning numerous aspects of the Debtors’ finances and transactions,” the filing continued.

In 2020, SBF’s brother Gabriel contributed to the establishment of Guarding Against Pandemics, a lobbying organization dedicated to promoting legislation to stop pandemics like COVID-19 in the future. The organization that sponsored federal lawmakers received some of SBF’s money directly, and he and his brother also gave money to specific campaigns personally.

U.S. regulators in New York have accused Bankman-Fried of fraud; he has entered a not-guilty plea. The collapse of FTX has harmed the cryptocurrency markets and the credibility of the sector.

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