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SBF’s Parents Claim Relationship with Son ‘Not Actionable,’ in Bid to Dismiss Lawsuit 

2 mins
Updated by Ciaran Lyons
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In Brief

  • Sam Bankman-Fried's parents face renewed scrutiny as allegations resurface regarding their awareness of their son's actions.
  • A legal filing emphasizes that the defendants allegedly sought to leverage the relationship with the disgraced founder.
  • SBF's parents have been consistently entangled in the FTX legal proceedings since the collapse of the exchange in 2022.
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Once more, the parents of the disgraced FTX founder, Sam Bankman-Fried, find themselves under scrutiny for their son’s actions. Allegations of their awareness are once again raised, which they vehemently deny.

“Reading between the lines, Plaintiffs seek to capitalize on the sheer fact that Defendants’ son was a founder and executive of the Debtor entities. That relationship is not actionable,” the filing stated.

Parents of SBF Firmly Reject Any Oversight on the Crypto Exchange

In a recent court filing, Bankman-Fried’s parents’ lawyers assert emphatically that they never occupied a directorial or any executive position at the now-defunct crypto exchange FTX or Alameda Research.

“While Plaintiffs allege Defendants interacted with the Debtor entities in limited capacities, neither Defendant ever held an executive role of any sort.”

The filing explains that the plaintiffs have not yet proved how Bankman-Fried’s parents were aware of the alleged breaches against him. Furthermore it states the “disallowance of claims is premature and procedurally improper.”

This follows the jury’s decision in November 2023 to declare that Bankman-Fried is guilty on all seven counts of fraud. The charges are in relation to the collapse of FTX in November 2022.

Read more: Who Is Sam Bankman-Fried (SBF), the Infamous FTX Co-Founder?

Prosecutors alleged that he embezzled $8 billion from the exchange’s customers, driven by sheer greed.

SBF Parents Take Center Stage from the Start

Bankman-Fried’s parents have been entangled in the ongoing proceedings against FTX for since the beginning.

In September 2023, BeInCrypto reported that former SEC official John Reed Stark was calling on federal agencies, including the Department of Justice (DoJ), to bring criminal charges against his parents.

Reed Stark proposed that Bankman-Fried’s parents could have potentially gained from their son’s alleged misconduct.

Around the same time, FTX debtors filed the lawsuit against Bankman-Fried’s parents seeking a significant amount of compensation.

“Bankman-Fried’s parents, Bankman and Fried exploited their access and influence within the FTX enterprise to enrich themselves,” the filing stated.

In more recent news, Bankman-Fried has been denied the extension request for his sentencing date scheduled in two months time, March 11.

Bankman-Fried sought a four to six-week extension for his sentencing date to enhance his preparation time. However, the judge rejected the request, deeming that he has already had sufficient time to prepare.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.