NEW YORK, NY - DECEMBER 22: FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his arraignment and bail hearings on December 22, 2022 in New York City. Bankman-Fried, who was indicted on December 9th and arrested 3 days later by Bahamas law enforcement at the request of U.S. prosecutors, consented to extradition to the U.S. where he is facing eight criminal counts of fraud, conspiracy and money-laundering offenses which includes making illegal political contributions. He is potentially facing life in prison if convicted. He was released on $250 million bond with the bail package requiring him to stay with his parents in California. (Photo by David Dee Delgado/Getty Images)

Sam Bankman-Fried’s family members are not cooperating with FTX attorneys, court documents claim

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Sam Bankman-Fried’s mother and brother are not cooperating with the FTX legal team’s investigations into the Bahamans-based exchange’s bankruptcy and misappropriation of customer funds, Wednesday’s court filing claimed.

See related article: Bankrupt FTX exchange has recovered US$5 bln worth of ‘liquid’ assets, lawyers say

Fast facts

  • FTX attorneys have requested authorization to issue subpoenas to former top FTX executives and advisors, which include the founder’s brother, mother and father. FTX lawyers claimed that Bankman-Fried’s family members may hold critical information to the recovery of funds. 
  • Bankman-Fried’s mother and political advisor, Barbara Fried, has allegedly “ignored the requests altogether.” His brother and political advisor, Gabriel Bankman-Fried also hasn’t responded to FTX lawyers.  
  • Gabriel Bankman-Fried has purchased a multimillion-dollar property using misappropriated customer funds, the filings alleged. 
  • The filing further alleged that Gabriel Bankman-Fried’s lobbying organization, Guarding Against Pandemics, seeked to influence legislation, endorse political candidates and “coordinated closely with his brother on political donations.”
  • According to the filings, Joseph Bankman, Bankman-Fried’s father and close advisor, stated that he and his wife “resided in a US$16.4 million house titled in their names, despite understanding that the house was intended to be the company’s property,” in their visits to the Bahamas.
  • Bankman and former FTX chief operating officer Zhe (Constance) Wang are expected to “agree to produce responsive documents.”
  • FTX co-founder Zixiao (Gary) Wang and former chief of Alameda Research Caroline Ellison declined to provide the requested information, while FTX co-founder Nishad Singh hasn’t responded, the filings said.

See related article: Will FTX’s collapse decentralize the industry?

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