The parents of FTX founder Sam Bankman-Fried are fighting to have the action issued by the exchange against them dropped because they claim that they had nothing to do with either dishonest transfers or breaches of fiduciary obligations.
Joseph Bankman and Barbara Fried’s attorneys stated in a Monday filing that the plaintiffs, which included Alameda Research and FTX debtors, were attempting to “capitalize on the mere fact that Defendants’ son was a founder and executive of the Debtor entities.”
The representatives for Bankman and Fried declared, “That relationship is not actionable.” Even though the plaintiffs claim the defendants had limited interactions with the debtor organizations, neither of the defendants ever held an executive position of any kind.
FTX filed a complaint against Bankman-Fried’s parents in September 2023, seeking damages for alleged misconduct, fraud, and breaches of fiduciary obligations. They submitted a document supporting their move to dismiss the claim on Monday.
The plaintiffs stated in the September filing, “As Bankman-Fried’s parents, Bankman and Fried exploited their access and influence within the FTX enterprise to enrich themselves, directly and indirectly, by millions of dollars, and knowingly at the expense of the debtors in these Chapter 11 Cases and their creditors.”
The parents are not accused in the complaint of using Blue Water as their primary or only place of abode, according to the attorneys.
Additionally, the lawsuit claimed that in an apparent attempt to elevate Bankman and Fried’s social and professional standing at the expense of the FTX Group, they lobbied for tens of millions of dollars in political and philanthropic contributions, including one to Stanford University.
The parents’ attorneys contended that the accusation is “of no legal significance” as it doesn’t state that Bankman or Fried obtained any “undefined benefit” from the donation to Stanford or that they received any money from it.
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