Crypto lawyer John Deaton raised alarming questions regarding the position of Sam Bankman-Fried’s (SBF) mother and father within the dramatic collapse of FTX final yr. The lawyer has identified quite a few cases the place the disgraced founder’s mother and father benefited financially from the crypto alternate earlier than its chapter, elevating suspicions of their involvement within the alleged fraud.
SBF’s Dad and mom Concerned In FTX Crash
Deaton took to Twitter to show the small print of Bankman-Fried’s mother and father’ involvement in FTX’s monetary affairs. In accordance with Deaton, Bankman-Fried had transferred $10 million to an FTX account beneath his identify, which he then gifted to his father, Joseph Bankman.
SBFraud gifted $10 million in an FTX account in his identify after which instantly transferred the cash to his father. SBFraud’s dad has lengthy taught firms and tax legislation at Stanford Legislation Faculty for many years. Have you ever seen all of the shell firms his dad helped him arrange? His… https://t.co/nkMplVdsfv
— John E Deaton (@JohnEDeaton1) August 14, 2023
This reward was made in 2021, profiting from a lifetime property and reward tax exemption, which allowed the complete quantity to be transferred just about tax-free.
The funds for this reward reportedly got here from a mortgage offered to Bankman-Fried by Alameda Analysis, FTX’s sister agency. This transaction additional entangled his father, Joseph Bankman, within the crypto empire’s affairs. Joseph, a Firms and Tax Legislation professor at Stanford Legislation Faculty, allegedly helped his son set up shell firms, which had been used to perpetuate the fraud related to FTX.
Political connections are drawn into query
Furthermore, Deaton emphasised the political connections of the Bankman-Fried family, as Joseph Bankman had beforehand supported Democratic Senator Elizabeth Warren. Bankman-Fried’s mom, Barbara Fried, operates a political motion committee (PAC) that assists Democrats.
Deaton raised considerations concerning the FTX founder’s proximity to the present chair of the Securities and Change Fee (SEC), Gary Gensler, a lifelong Democrat. He questioned whether or not the hundreds of thousands of {dollars} influenced Gensler‘s conferences with Bankman-Fried, who had donated to the Democratic Get together.
Bahamas actual property raises eyebrows
Moreover, Deaton identified that the FTX founder’s mother and father owned actual property within the Bahamas, which had been bought utilizing funds from the now-defunct crypto alternate.
The crypto lawyer questioned why Joseph Bankman was allowed to retain the $10 million gifted with FTX funds and why not one of the mother and father confronted fees concerning the alternate’s collapse.
Because the investigation into the downfall of FTX continues, these revelations solid a shadow on the position of Sam Bankman-Fried’s mother and father within the affair. The advanced net of economic transactions, coupled with the political connections, raises additional questions concerning the extent of the involvement of SBF’s mother and father within the alleged fraud. Nevertheless, the continuing authorized inquiry stays to uncover the entire reality.
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