Sam Bankman-Fried’s Family To Testify in Bankruptcy Court 

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According to reports, attorneys for FTX in bankruptcy court have suggested that Sam Bankman-Fried‘s family should be questioned about their financial situation.

FTX’s attorneys asked Judge John Dorsey in the District of Delaware to permit them to question Joseph Bankman, Barbara Fried, and Gabriel Bankman-Fried — SBF’s parents, mother, and brother, respectively — under oath about any financial advantages they may have received from the exchange, according to a Jan. 26 Bloomberg report. 

In an effort to find assets connected to the insolvent cryptocurrency exchange, other FTX officials may be asked the same questions.

According to reports, the exchange’s workers received tax advice from Stanford Law School professor Joseph Bankman, who postponed at least one of his seminars due to the FTX scandal and also gave advice on selecting the company’s legal counsel. 

Bankman assisted in guaranteeing SBF’s $250 million bail together with his wife, Barbara Fried, a professor of law at Stanford, using the equity in their California residence.

In 2020, Bankman-Fried’s brother, Gabriel, contributed to establishing Guarding Against Pandemics, a lobbying organization dedicated to promoting laws to stop pandemics like COVID-19 in the future. The organization that sponsored federal politicians received some of SBF’s money directly, and he and his brother also gave money to certain campaigns individually.

Should Judge Dorsey permit the issuance of subpoenas, it is uncertain if interrogating the family members will lead to the discovery of “hidden” cash connected to FTX by investigators. 

Although it is said that Joseph Bankman has already retained legal counsel for his son’s criminal prosecution, this evidence would be subject to FTX’s bankruptcy procedures.

Sam Bankman-Fried is charged with eight crimes, including wire fraud and breaking campaign financing regulations.

SBF has spent most of the time since his arraignment in the United States after being extradited from the Bahamas confined to his parent’s house. His trial is set to start in October.

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