FTX Lawyers Asks Permission to Subpoena Sam Bankman-Fried and His Family

New Court filings have disclosed that FTX bankruptcy lawyers have approached a Court with a request for Sam Bankman-Fried’s family, and powerful officials at the defunct FTX to be ordered on pain of penalty to testify before the Court.

The FTX lawyers took the drastic step in order to recover the assets of investors still trapped in the defunct exchange. According to reports from Bloomberg, the court order seeks to question Bankman-Fried’s family and former executives under oath.

If the Judge grants permission, Bankman-Fried’s family and former executives will be asked questions about their personal wealth and any money they may have gotten from the defunct FTX exchange. They will also be asked to present documentation, including tax returns, to prove their income.

FTX’s lawyers are taking this approach because they believe Bankman-Fried’s relatives have a working knowledge of the bankrupt exchange. The court filing stated that Joseph Bankman provided tax advice to FTX employees and assisted in the recruitment of the company’s first lawyers.

In addition, the former CEO’s brother, Gabriel Bankman-Fried, established a business that lobbied US Congressmen from a lavish house close to the US Capitol.

How did Bankman-Fried Spend His Money?

Bankman-Fried was an ardent contributor and financier to political groups and charitable organizations during his time as the CEO of the bankrupt FTX exchange.

He was alleged to have donated to both Democratic and Republican candidates through political action committees (PACs). As a result, He was rated the third-best contributor and the best donor in the cryptocurrency sector. Notably, the majority of these donations were made under other people’s names. 

Many believed that he gave these donations in order to have an impact on the laws and regulations that govern the cryptocurrency industry. To this end, the new FTX management is seeking to recoup funds donated to political and charitable organizations by the former CEO.

It was also reported that former top executives of FTX and Bankman-Fried’s parents bought not less than 19 properties valued at approximately $121 million in the Bahamas. Furthermore, it is unclear what Bankman-Fried did with the $300 million he pocketed from the exchange’s $420 million raised in October 2021.