The company said in a court filing on Monday that FTX, a crypto exchange that went bankrupt, has filed a lawsuit against its founder and ex-CEO Sam Bankman-Fried and his parents, Joseph Bankman and Barbara Fried.
The lawsuit aims to “recover millions of dollars in funds that were illegally transferred and misused” by them. The filing, which has some parts blacked out, requests the court to grant the FTX estate compensation, the restitution of any assets or payments that FTX gave to the parents before, and punitive damages for their “deliberate, reckless, and malicious behavior.”
The filing cited one example: “Bankman and Fried got the title to Blue Water, which FTX Trading paid $18,914,327.82 for, including taxes, fees, and costs. They also spent more than $90,000 on various expenses related to Blue Water.”
The filing further claimed that “Bankman used his expertise in tax law and his special knowledge of the FTX Group’s confusing corporate structure to enable the transfer of a cash gift worth $10 million from Alameda Ltd. funds to himself and Fried.”