According to multiple reports, the family of FTX co-founder Sam Bankman-Fried (SBF) is being investigated by the US government for alleged involvement in the company’s operations. Recently, the current FTX CEO John J. Ray III informed US members of Congress that Joseph Bankman and Barbara Fried, the parents of SBF, “certainly received payments” from the company.
SBF’s Ethically-Conscious Parents Investigated for Ties to FTX
On Saturday, Reuters reported that FTX co-founder Sam Bankman-Fried (SBF) had agreed to surrender to US authorities, after initially refusing extradition. Reports have also detailed the involvement of SBF’s parents, who are reportedly based in the Bahamas and have been supporting their son in his business endeavors.
During his testimony in front of Congress, the current FTX CEO was asked about the involvement of SBF’s parents and whether they were married. Ray responded by saying that “he got paid” and “the family certainly received payments”.
The comments from the FTX CEO to Congress followed reports of $121 million in real estate being purchased in the Bahamas linked to SBF and FTX. One of these properties was a $16.4
The former CEO of FTX, Sam Bankman-Fried, informed members of Congress that his family “certainly received payments” from the company, according to Wall Street Journal authors Justin Baer and Hardika Singh. A spokesperson for Bankman-Fried stated that FTX had paid the money.
For at least one year, Bankman-Fried had been working as a volunteer for charity projects on the now-defunct cryptocurrency trading site. He was also a mentor of the company prior to speaking in front of the House Financial Services Committee on December 8, 2021.
The reports also suggest that Bankman-Fried advised the company on legal issues prior to its formation. Despite the fact that it is unknown if the SBF family was further involved in Bankman-Fried’s business affairs, the family still faces considerable legal costs from the white-collar lawyer SBF hired.
What do you think of the reports that Bankman-Fried’s parents could face criminal charges for their involvement in his business? Share your thoughts on the topic in our comments section.