FTX was a family business fraud . His mother received tens of millions through her PAC. His father advised on tax law, for "free"(& later for $1M). Even his sister was a "consultant". Also, SBF effectively said he has no idea how a $14M "company" property was titled to his parents.
Please take all this info as allegedly, just in case SBF to sue my poor butt.
Let's start with the father. SBF's father was(later forced to step down) a Stanford law professor with decades of experience in tax law and supposedly corporate bankruptcy by extension. He was also a proud and vocal early investor in FTX as he once quoted as being "very involved in the business".
SBF's mother is also likewise a (former) tax Professor at Stanford. She was also a avid political lobbyist and activist in effect, being the co-founder of the PAC Mind the Gap and her questionable writings publications on (avoiding) morals and ethics such as "The Limits of Personal Responsibility" and "Beyond Blame".
His mother describes herself with SBF as “partner in crime of the noncriminal sort”. SBF has referred to FTX as "a family business". Make of that what you will.
As an aside, that first paragraph alone severely undercuts something Kevin O'Leary said where he once stated that he trusts FTX, in particular because his parents were compliance experts, something that isn't true.
In a new lawsuit, SBF's father allegedly specifically advised FTX founders to pursue funnelling of funds into real estate in the Bahamas and questioned how feasible the efforts would be in the face US compliance/tax laws, even acquiring counsel for co-worker Stanford legal professors.
It also describes the father as having performed several instance of legal advising despite having no employment/partner relationship with the firm.
Later, his father was added to the payroll for 200k/ yr, something SBF's father complained about in an email "threatening" to being up the issue to SBF's mother. His salary was later raised 5x to $1M. And no you didn't read that wrong.
He also supposedly arrange to have his sister receive $14,000/mo as a "consultant" in charitable contributions. He also is alleged to have made many instances of very high level management decisions for the firm.
SBF's mother, for her part received millions through her PAC Mind the Gap. It is clearly seen FTX exec Singh having made a "donation" of $1M to the PAC. The lawsuit further alleges that Mind the Gap received a further tens of millions more directly from SBF in order to fund Democrat political action.
In particular, Singh has already pleaded guilty to campaign finance violations. On this note, SBF's father also drafted tax legislation for the Sen. Elizabeth Warren, showing ever deepening Democratic family ties. And we all know that SBF was the second largest Democratic donor behind only George Soros and had also made significant donations to the Republicans by his own admission.
Later, his parents also received around $10M in gifts as well as the infamous $14M property in the Bahamas. SBF stated that this property was meant to be for company purposes and basically this is all a big "oopsie". They also had almost $100k in expenses covered by company funds. Around $5.5M was also gifted to his parents' employer Stanford University.
https://www.opensecrets.org/political-action-committees-pacs/mind-the-gap/C00683649/donors/2022
https://nymag.com/intelligencer/2023/09/ftx-sues-sam-bankman-frieds-parents-for-millions.html
https://www.nytimes.com/2022/12/12/technology/sbf-parents-ftx-collapse.html
https://storage.courtlistener.com/recap/gov.uscourts.deb.188450/gov.uscourts.deb.188450.2642.0.pdf
https://fortune.com/crypto/2022/11/11/sbfs-disgrace-could-make-things-awkward-for-gary-gensler-and-the-democrats/
