FTX to Question Sam Bankman-Fried’s Family About Its Wealth:Report

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Key takeaways:

  • FTX pursues assets that a family could have obtained via a failed business.
  • FTX attorneys seek the court to force the family to communicate and give records.

Daily findings are being revealed regarding Sam Bankman-Fried [SBF] and FTX. A new complaint claims that the defunct exchange owes money to companies including Apple, Binance, and Netflix. Before that, by mistake, BlockFi revealed its $1.2 billion exposure to FTX.

The current status of Bankman-Fried parents and brother is supposedly unnoticed. However, lawyers have requested that Bankman-Fried’s family answer questions and disclose financial records regarding their riches in a court filing.

Attorneys have also requested additional records pointing to an FTX money transfer. According to a court document, FTX requested permission to interview the family about their riches and personal assets while they were under oath.

The paper also disclosed that Sam Bankman-Fried’s brother Gabriel established a group that put pressure on US Congressmen. It allegedly ran out of a structure near the US Capitol. It is commonly known that FTX made political contributions and lobbied on behalf of public officials. SBF did give lavishly, primarily to the Democrats.

According to recent sources, he approved financing totaling more than $40 million for 2022. The Democratic members of the House Financial Services Committee also received $300,000 from him. Notably, SBF gave $1 million to politician Robert Francis “Beto” O’Rourke’s campaign in the United States.

FTX is currently searching for hidden assets that could be used to pay off billions of dollars in creditors’ debt. Attorneys have asked permission to interview other former senior executives of the corporation and Bankman-Fried’s family to move in that direction.

John Dorsey, the bankruptcy judge in charge of the case, must approve the request before FTX lawyers can subpoena the Bankman family. If they were effective, they would have to submit to questioning and provide the judge with paperwork.

According to reports, their son’s company employed Barbara Fried and Joseph Bankman. Joseph Bankman provided tax advice to the exchange personnel. He was involved in the hiring of the legal team, according to the allegation. Additionally, FTX and its top executives contributed to the creation of Fried’s political action committee.

Degen traders continue to purchase and sell FTT, the exchange’s native token, despite the continuous unrest at the insolvent exchange. Surprisingly, according to CoinGecko, its price has increased by a factor of two in the last month.

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