Sam Bankman-Fried family non-cooperates with probe

While hundreds and thousands of innocent people are in absolute dark about the possibility of getting their money refunded by fraudulent crypto venture FTX, most of the family members of Sam Bankman-Fried, including his mother, father and brother are not cooperating with the probe. It was revealed on January 26, 2023 when lawyers brought the matter to attention of the court.

It may be mentioned here that, mother, father and brother of Sam Bankman-Fried were advisors of the fraudulent crypto venture FTX and the filing said, “The Debtors and their advisors have been working tirelessly and nonstop over the last 70 plus days … to implement controls, recover and protect estate assets,” said the legal filing made jointly by FTX and creditor representatives. Key questions remain, however, concerning numerous aspects of the Debtors’ finances and transactions”.

Lawyers said, FTX wants to know who received potentially stolen funds from FTX, and what communications they had with its executives – but alleges that some potential witnesses aren’t playing ball despite requests to cooperate voluntarily.

It said, Sam Bankman-Fried’s mother, Barbara Fried, “has ignored the requests altogether”, while “the debtors have not received meaningful engagement or any response from [former chief engineer] Nishad Singh or Mr. Gabriel Bankman-Fried”, Sam’s brother.

Discussions with lawyers for Sam Bankman-Fried’s father, Joseph Bankman, are “ongoing” and were expected to lead to a consensual outcome, the filing said.

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FTX, known in bankruptcy proceedings as the Debtor, alleges that Gabriel Bankman-Fried’s lobbying organization, Guarding Against Pandemics, “purchased a multimillion-dollar property a few blocks from the United States Capital [sic], which the debtors believe was purchased using misappropriated customer funds”.

Sam Bankman-Fried’s political action committee, Mind the Gap, also allegedly received donations from Sam Bankman-Fried and other FTX staffers, and both parents “resided in a $16.4 million [Bahamas] house titled in their names, despite understanding that the house was ‘intended to be the company’s property’”, the filing said.

In an emailed statement, Marissa McBride, Executive Director of Mind the Gap, told media that “Sam Bankman-Fried contributed to some of the programs that Mind the Gap recommended to its network, but he did not make any direct contributions to Mind the Gap”, and that the group publicly discloses all contributions received to the Federal Election Commission.

Sam Bankman-Fried should also be subpoenaed by the court, the filing said, as should FTX co-founder Gary Wang and Caroline Ellison, chief executive of trading firm Alameda Research, who, the filing said, “expressly declined to provide the requested information”.

According to sources, the request of subpoena shall be discussed at a February 8, 2023 hearing in the US bankruptcy court in Delaware – the hometown of President Joe Biden.

Meanwhile, there is rumor of connections between Hunter Biden and the family members of Sam Bankman-Fried, although investigators are not yet focusing on this matter.

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