FTX has sued the parents of Sam Bankman-Fried, Allan Joseph Bankman and Barbara Fried, in an effort to recover $10 million in cash gift and $16.4 million in property in The Bahamas. According to details filed in court, the crypto exchange claims that these transactions occurred even as the parties involved knew of the likely insolvent status of the company.
The complaint also includes details of email exchanges between Bankman and FTX US over the payment of $200,000 annual salary. Per the email, Bankman said to his son that his annual salary was “supposed” to be $1 million a year.
Conor Grogan, head of product at Coinbase highlighted this on Twitter, and it’s after this exchange that the $10 million was taken from Alameda and the property worth $16.4 million was gifted to Bankman-Fried’s parents.
The former FTX CEO now faces a criminal trial set to begin on October 3 and was recently sent to jail after federal prosecutors sought his detention over witness tampering. He is also facing several wire and securities fraud charges.