🚨 Sam Bankman-Fried's Parents Seek Dismissal of 'Threadbare' FTX Lawsuit⚖️

Joseph Bankman and Barbara Fried, parents of former FTX CEO Sam Bankman-Fried, are pushing to dismiss the cryptocurrency exchange's lawsuit against them. 📉 In a recent filing, their lawyers argued the lawsuit is "threadbare" and solely based on the fact that their son was involved with FTX. Let's delve into the legal tussle.

1. Lawsuit Overview: FTX Estate Seeks Millions in Damages

In September 2023, FTX's estate filed a lawsuit aiming to recover "millions of dollars in fraudulently transferred and misappropriated funds." Allegedly, the funds were taken by the couple, and damages were sought for breaches of fiduciary duties and other misconduct.

2. Defense Argument: No Executive Role, No Breach of Duty

Bankman and Fried's legal defense emphasizes that neither of them held an executive role at FTX, debunking claims of fiduciary duty breaches. They argue the lawsuit is unfounded, lacking specific facts to demonstrate their knowledge of any alleged misconduct.

3. Counterargument: Knowledge Requirement

The defense asserts the need for the estate to prove "actual knowledge" of actions leading to a breach of fiduciary duty, challenging the lawsuit's reliance on a "knew or should have known" premise.

🗣️ Quotes from the Filing:

"Neither Defendant ever held an executive role of any sort.""The $10 million gift came directly from Mr. Bankman-Fried’s personal account."

4. Unraveling the Complexities: Bankman's Informal Role

While Bankman had no formal role, a September 2023 Bloomberg article revealed his attendance at meetings discussing tax issues and FTT token development. The defense contends that informal involvement doesn't translate to fiduciary duty.

⚖️ In Legal Limelight: FTX Estate vs. Bankman-Fried's Parents

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