FTX dropped lawsuit against Allan Bankman and Barbara Fried
According to a filing in the Bankruptcy Court for the District of Delaware, the estate of crypto exchange FTX has settled lawsuits against the parents of its founder, Sam Bankman-Fried (SBF).
According to the document, which was originally filed in February and appears to have been largely overlooked, the lawsuits have been dismissed without prejudice.
Allan Joseph Bankman and Barbara Fried participated in critical aspects of the FTX business and its associated hedge fund, Alameda Research, that misappropriated funds from FTX customers. For years, Bankman and Fried’s ultimate culpability for actions related to the crimes of their son remained unknown.
Today, SBF is in prison serving a 25-year prison sentence. Nevertheless, his parents remain free civilians. The US government has never publicly charged his parents for crimes.
Million-dollar payments from FTX to SBF’s parents
When John J. Ray III took over to clean up the FTX collapse in November 2022, a forensic analysis discovered literal and figurative fingerprints from SBF’s parents across the businesses. It also revealed millions of dollars worth of cash and real estate flowing to these family members.
Joseph worked as a fund-raiser, part-time employee, and advisor for the crypto trading giant, while Barbara also allegedly enjoyed FTX’s payments of cash and real estate.
Read more: Diddy joins SBF, Avraham Eisenberg in ‘horrific’ Brooklyn prison
According to the filing, FTX settled its complaint against SBF’s parents “without prejudice.” This legal caveat means that although FTX doesn’t intend to pursue the litigation at this time, it retains the right to re-file its complaint in the future.
Specifically, settlements and associated communications related to settling marked “without prejudice” are generally not admissible in court as evidence. For this protection to apply, the communication must be part of a genuine attempt to resolve the dispute.
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