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Sam Bankman-Fried’s father, Joe Bankman, moaned about being paid $200,000 a year in salary and expected to make $1 million, while FTX accuses him and his wife of siphoning $10 million from the company
Joe Bankman, 68, complained that his salary from bankrupt crypto exchange platform FTX was one-fifth of what he expected, court filings reveal
He asked his wife Barbara Fried to “lobby” their son to increase his salary, lawyers say
Within months, they reportedly received $10 million and a house in the Bahamas worth $16.4 million
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Sam Bankman-Fried’s father lamented that his $200,000 salary from his son’s now-bankrupt crypto platform was a fraction of the $1 million he expected, according to court documents.
Details of Joe Bankman’s complaint were laid out in a Delaware lawsuit alleging that he and his partner Barbara Fried used their influence at FTX to enrich themselves to the tune of millions of dollars.
Joe, 68, is said to have emailed FTX in January 2022 to complain that his salary was a fifth of what he expected.
The Stanford University law professor complained that he was paid about $16,500 a month when he expected $80,000.
He took his complaint to his son, before calling in his mother and telling him: ‘Gosh Sam, I don’t know what to say here. This is the first (I) heard of the 200,000 per year salary! I’m putting Barbara on this.’
Joe Bankman is a tax law professor at Stanford University and was a formal employee of FTX prior to its collapse.
Weeks later, the couple received $10 million from Alameda Research, FTX’s sister hedge fund, also founded by their son, according to the lawsuit, while within three months they signed over the deed to a $16.4 million home in the Bahamas.
Lawyers claim Joe essentially used Stanford University law professor Barbara, 71, to “lobby” their son to increase their salaries.
Barbara is also accused of helping her son “avoid or even violate federal campaign finance disclosure rules” surrounding his political donations.
Meanwhile, Joe reportedly siphoned $5.5 million in donations to Stanford University to “ingratiate himself” with his employer, while “showering” his family and friends with gifts.
The couple is further accused of helping to cover up complaints from the crypto exchange’s former lawyer.
Law professor Barbara Friend has been accused of helping her son mismanage FTX funds to siphon off millions of dollars to enrich himself
$16.4 million: The sprawling property in Old Fort Bay, the luxury gated community where records show Bankman-Fried’s parents owned a “vacation home”
The lawsuit alleges that the couple “either knew — or ignored bright red flags that revealed — that their son, Bankman-Fried, and other FTX Insiders were orchestrating a major fraudulent scheme.”
A statement from the couple’s lawyers denied all the allegations, saying they are “completely false.”
Sean Hecker, counsel for Joe, and Michael Tremonte, counsel for Barbara, said, “This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury trial just days before their child’s trial begins. These claims are completely false.
‘Mr. Ray and his vast team of lawyers, who collectively rack up countless millions of dollars in fees while giving relatively little back to FTX clients, know better.
Stanford University said in a statement that the institution will refund the money “in its entirety.”
Dee Mostofi, spokesperson for the university, said: “Stanford received gifts from the FTX Foundation and FTX-related companies, largely for pandemic-related prevention and research.
Sam Bankman-Fried, 31, is currently in jail awaiting trial
“We have been in discussions with lawyers for the FTX debtors to recover these gifts and we will refund the money in full.”
Bankman-Fried is currently jailed and awaiting trial on federal charges of money laundering and fraud in connection with the disastrous collapse of FTX.
He was at the helm of the crypto platform when it filed for bankruptcy protection after a run on deposits exposed a whopping $8 billion hole in the exchange’s accounts.
Shortly thereafter, Bankman-Fried was indicted by federal prosecutors in Manhattan.
The trial against the 31-year-old will start on October 3. He has pleaded not guilty.