Our funds to finance his defense. Sam Bankman-Fried has been in the midst of legal turmoil ever since his exchange went bankrupt, FTX. The charges against the man seen as the legitimate heir to Bernard Madoff. And we wouldn’t be not yet at the end of our surprises. At least, if we are to believe the latest accusations levelled against the leader. Read all about it.
Sam Bankman-Fried reportedly pays legal fees with stolen FTX money
Indeed, new accusations have just been made by the opposing party. Namely, the current managers of the FTX exchange, who are trying to recover the funds stolen from customers. Under the of John Ray IIIan expert in corporate liquidation, his teams use every means at their disposal to recover money from creditors, both individuals and investors. And the latter go from discovery to discovery, each more hallucinating than the last.
And the latest one will surprise you, unless you’re starting to get used to it? A new lawsuit has been filed in bankruptcy court. According to it, Sam Bankman-Fried’s father would pay his son’s defense lawyers with stolen FTX money. The same money John Ray III is trying to recover.
Lawyers for the current FTX exchange, expected to be potentially relaunched in 2024are looking to get their hands on millions of dollars stolen by Sam Bankman-Fried and his henchmen. Except that these funds have sometimes been donated to organizations, or invested as with the purchase of Robinhood shares for 546 million dollars. But Sam also transferred large sums to his own family. Sums that are now being used to cover his legal fees.
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A $10 million « gift
Sam Bankman-Fried is said to have made a « gift » to his father of 10 million dollars. The money would first be retrieved from the exchange’s addresses. Then Sam would have switched it to his personal FTX account, before sending it to that of his father, Joseph, a minute later. The Standford University professor then transferred $7 million to his personal bank account at Morgan Stanley. It should be noted that Joseph Bankman-Fried also reportedly lost over a million dollars of this « gift » amount in an attempt to trade cryptos.
However, this $7 million is currently being used to pay Sam’s legal fees for his trial.
Even more astonishing. Another part of the lawsuit refers to the crazy plans of Sam Bankman-Fried’s younger brother, Gabriel. His ambition was to buy Naurua micro-island state in Micronesia. Gabriel’s idea was to create a post-apocalyptic refuge for all members of their school of thought, Effective AltruismSam Bankman-Fried was one of its advocates. A school of thought that urged its believers to raise as much money as possible to redistribute to charity.
No doubt they should have mentioned the requirement that this money be acquired legally. But never mind. These revelations come from a memo written by Gabriel and found by the investigators.
Clearly, Sam Bankman-Fried and his cronies at FTX treated their customers’ money as their own. But they also shared it with their families. It’s hard to imagine how far this organized theft could have gone. But one thing’s for sure: it looks like we’re not in the clear yet. at the end of our surprises.
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