Joseph Bankman and Barbara Fried, parents of former FTX CEO Sam Bankman-Fried, are trying to have the lawsuit filed against them by the bankrupt cryptocurrency exchange dismissed. .
In papers filed Jan. 15, attorneys for the two men argued that FTX Real Estate’s case is “bare facts” and based on the “mere fact that the defendant’s son was a founder and officer of the debtor corporation.”
FTX Real Estate sued Bankman and Freed in September 2023, seeking to recover “millions of dollars in fraudulent transfers and misappropriated funds” the couple allegedly swindled. The suit also seeks damages for breach of fiduciary duty and other misconduct.
In papers filed Jan. 15, attorneys for Bankman and Fried argued that “both defendants” are “defendants.” always Since he assumed any kind of administrative role at the exchange, no breach of fiduciary duty occurred.
Attorneys for both men also said the estate must allege “specific facts showing actual knowledge that the defendants knew that certain actions would result in a breach of fiduciary duty,” and that Bankman and Fried “simply do not allege that they knew or should have done so.” “It’s not enough,” he claims. “Everyone knows it.”
Bankman has no official role at FTX, but in September 2023 bloomberg According to the article, he attended a meeting discussing tax issues and developing marketing materials for the exchange’s FTT token.
Among the funds Bankman-Fried allegedly mismanaged was a $10 million gift to his father, according to a lawsuit filed in July 2023 by FTX’s current executives. In a January filing, lawyers for Bankman and Fried argued that the $10 million gift “came directly from Ms. Bankman-Fried’s own personal accounts” and that at the time of the transfer, the exchange was “not only payable but highly successful.”
