Sam Bankman-Fried’s father, Joe Bankman, complained about receiving a $200,000-a-year salary and expecting $1 million as FTX accuses him and his wife of having siphoned $10 million from the company.
- Joe Bankman, 68, complained that his salary from cryptocurrency exchange FTX was a fifth of what he expected, lawsuit says
- He asked his wife Barbara Fried to ‘pressure’ their son to increase his salary, lawyers say
- Within months, they reportedly received $10 million and a $16.4 million house in the Bahamas.
Sam Bankman-Fried’s father complained that his $200,000 salary from his son’s now-bankrupt crypto platform was a fraction of the $1 million he expected, according to court documents.
Details of Joe Bankman’s claim were laid out in a Delaware lawsuit that claims he and his partner Barbara Fried used their influence at FTX to enrich themselves to the tune of millions of dollars.
Joe, 68, reportedly emailed FTX in January 2022 to complain that his salary was a fifth of what he expected.
The Stanford University law professor complained about being paid about $16,500 a month, when he expected $80,000.
He directed his reproach at his son, before attacking his mother and saying: “Damn, Sam, I don’t know what to say here. This is the first time I’ve heard of the $200,000 per year salary! Put Barbara on this.
Joe Bankman is a professor of tax law at Stanford University and was an official employee of FTX before its bankruptcy.
A few weeks later, the couple received $10 million from Alameda Research, FTX’s sister hedge fund, also founded by their son, according to the lawsuit, while three months later they received the deed to the property of a $16.4 million home in the Bahamas.
The lawyers claim Joe essentially used Stanford University law professor Barbara, 71, to “pressure” their son to raise their salaries.
Barbara is also accused of helping her son “avoid or even violate federal campaign finance disclosure rules” regarding his political donations.
Meanwhile, Joe allegedly siphoned off $5.5 million in donations to Stanford University in order to “curry favor” with his employer, while “showering” his family and friends with gifts.
The couple was further accused of helping cover up the crypto exchange’s former lawyer’s complaints.
Law professor Barbara Friend was accused of helping her son mismanage FTX funds in order to siphon off millions of dollars to enrich himself.
$16.4 million: The sprawling Old Fort Bay property, the luxury gated community where records show Bankman-Fried’s parents owned a ‘vacation home’
The suit claims the couple “either knew — or ignored the revealing bright red red flags — that their son, Bankman-Fried, and other FTX insiders were orchestrating a vast fraudulent scheme.”
A statement from the couple’s lawyers denied all allegations, saying they were “completely false.”
Sean Hecker, Joe’s attorney, and Michael Tremonte, Barbara’s attorney, said: “This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before Joe’s trial begins. their child. These claims are completely false.
‘Mr. Ray and his massive team of lawyers, who collectively rack up millions of dollars in fees while returning relatively little to FTX’s clients, know better,”
Stanford University, in a statement, said the institution would return the funds “in full.”
Dee Mostofi, a university spokesperson, said: “Stanford has received gifts from the FTX Foundation and FTX-related companies, largely for pandemic prevention and research.
Sam Bankman-Fried, 31, is currently in jail awaiting trial
“We have had discussions with FTX debtors’ attorneys to recover these gifts and we will return the funds in full.”
Bankman-Fried is currently imprisoned and awaiting trial on a federal indictment on charges of money laundering and fraud in connection with the disastrous collapse of FTX.
He was at the helm of the crypto platform when it filed for bankruptcy protection after a run on deposits exposed a massive $8 billion hole in the exchange’s accounts.
Shortly afterward, Bankman-Fried was indicted by federal prosecutors in Manhattan.
The 31-year-old’s trial is scheduled to begin on October 3. He pleaded not guilty.