The parents of disgraced cryptocurrency founder Sam Bankman-Fried, Barbara Fried and Joseph Bankman, are now facing legal trouble of their own as they are being sued by FTX, the company that filed for bankruptcy last year. FTX is seeking to recover millions of dollars in compensation and benefits from Bankman and Fried, alleging that they helped run their son’s crypto empire and were handsomely rewarded for it. Bankman, who teaches at Stanford Law School, is a prominent scholar in US tax policy and also works as a therapist. Fried, on the other hand, is known for her work on legal ethics and has recently retired from teaching.
Bankman’s alleged involvement in FTX began before he officially joined the company as a senior advisor to the FTX Foundation. He was said to be a de facto officer, director, and/or manager in his son’s crypto empire, offering strategic advice, helping with hiring decisions, vetting outside counsel, and making significant financial decisions. The lawsuit against Bankman and Fried claims that they used their influence and status as Bankman-Fried’s parents to enrich themselves at the expense of FTX.
Barbara Fried, who has retired from teaching, has turned her attention to writing poetry and short stories. She also co-founded a nonprofit organization called Mind the Gap, which engages in political spending. Both Bankman and Fried are respected figures in the academic community, and colleagues have come to their defense, stating that they have always been generous and devoted to good causes. The trial against Sam Bankman-Fried and the legal troubles faced by his parents add another layer of complexity to the FTX saga.