FTX sued its founder SBF's parents, Joseph Bankman and Barbara Fried, on Monday, asking for the return of millions of dollars in fraudulently transferred and misappropriated funds.
In the court filing, FTX said that FTX Trading paid nearly $19 million, inclusive of taxes, fees, and costs, for Blue Water, owned by Bankman and Fried, as well as various expenses related to Blue Water totaling more than $90,000. Bankman also transferred a cash gift totaling $10 million to himself and Fried consisting of Alameda funds.
"Bankman and Fried deployed their decades of experience as sophisticated law professors and veneer of legitimacy not to help the FTX Group, but rather to plunder it in order to enrich themselves and their pet causes," said the filing.
In addition, FTX alleged that Bankman helped other FTX insiders dissipate FTX group funds on donations, while Fried helped SBF with his political contribution strategy.
The filing didn't disclose the specific amount Bankman and Fried misappropriated but provided some line items. It pointed out that Bankman received an annual salary of $200,000 for his role as a senior adviser to the FTX foundation, more than $18 million for the property in the Bahamas, and $5.5 million in FTX Group donations to Stanford University.
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