Crypto lawyer John Deaton recently highlighted the role of Sam Bankman-Fried’s parents in the dramatic collapse of FTX last year. The lawyer cited various instances of the disgraced founder’s parents benefitting from the crypto exchange before its bankruptcy, including a multi-million dollar gift to his father, Joseph Bankman.
Deaton took to Twitter earlier today to highlight the role of Sam Bankman-Fried’s parents in his FTX-related fraud:
Deaton pointed out that Bankman-Fried had previously transferred $10 million in an FTX account under his name, and then gifted the same to his father. The gift was made in 2021 using a lifetime estate and gift tax exemption, which made the whole amount virtually taxless. The funds for the gift were reportedly derived from a loan that was extended to Bankman Fried by FTX’s sister firm Alameda Research, which entwined his father further into the crypto empire’s affairs.
Joseph Bankman, a professor of Corporations and Tax Law at Stanford Law School, allegedly helped his son set up shell companies that were used to perpetuate the fraud in connection with FTX. According to Deaton, Bankman previously helped senior Democratic Senator Elizabeth Warren. Bankman-Friend’s mother, Barbara Fried, currently runs a political action committee (PAC) that helps Democrats.
Deaton added that the FTX founder’s parents also owned real estate in the Bahamas, which was paid for by the now-bankrupt crypto exchange. The crypto lawyer questioned why Joseph Bankman was allowed to keep the $10 million that were gifted with FTX funds and why none of the parents were charged in connection with the exchange’s collapse.
Earlier today, the crypto lawyer highlighted Bankman-Fried’s proximity to the current chair of the Securities and Exchange Commission (SEC), Gary Gensler. Describing Gensler as a lifelong Democrat, Deaton questioned his meetings with Bankman-Fried and indicated they may have been prompted by the millions of dollars donated by Bankman-Fried to Democrats.
