Sam Bankman-Fried’s Father Attended Meetings on FTX Token Marketing and Tax Issues

FTX founder Sam Bankman-Fried’s father, Joseph Bankman, performed a task in conferences the place advertising and marketing supplies have been developed for FTT—the cryptocurrency that performed a pivotal position within the trade’s collapse when it buckled final November, Bloomberg reported.

Bankman, a professor at Stanford Legislation Faculty, was additionally concerned in conferences that mentioned tax points, the outlet reported, citing invoices from the legislation agency Fenwick & West. The legislation agency was employed by hedge fund Alameda Analysis, FTX’s sister agency.

It’s an attention-grabbing flip as a result of the FTX founder’s counsel signaled final month he may lean into an “advice-of-counsel” protection at his soon-to-begin trial, the place a purported lack of prison intent rests on assurances he acquired from legal professionals on the helm of FTX. 

Whereas Bankman shouldn’t be talked about particularly in a court docket submitting that outlines the technique, Bankman-Fried’s father—a authorized scholar specializing in tax legislation—reportedly gave his son in depth recommendation. Even earlier than FTX was ever launched, and Bankman-Fried led Alameda, his father lent a hand on authorized issues in line with Thursday’s report.

Bankman-Fried and FTX insiders have been accused of misappropriating billions of {dollars} of buyer funds, in what’s allegedly one of many greatest frauds in American historical past. He faces a litany of costs, together with fraud and cash laundering, which he has pleaded not responsible to.

An individual conversant in FTX’s operations instructed Bloomberg that Bankman performed a key position within the trade’s resolution to relocate its headquarters to the Bahamas from Hong Kong. 

Funds allegedly mismanaged by Bankman-Fried embody a $10 million reward to his father, in line with a lawsuit introduced by FTX’s present administration in July. The lawsuit accuses Bankman-Fried’s father of utilizing the funds to bankroll his son’s authorized protection.

Bankman-Fried’s father had no formal position on the firm, however he appeared as a U.S. founding father in an FTX business that ran in the course of the Tremendous Bowl in 2022. Within the advert, Bankman rebutted comic Larry David’s critique of the U.S. Structure.

Earlier than FTX’s fortunes fell into oblivion, Alameda’s operations have been allegedly supported by FTT.

The trade token fell after Binance CEO Changpeng Zhao stated Binance would liquidate its holdings of the FTT, and the token’s tailspin grew deadly after Binance backed away from a possible buyout of its rival FTX.

As clients rushed to withdraw their funds from the flailing trade, FTX couldn’t fulfill buyer withdrawals. The trade filed for chapter after being compelled to confess it didn’t maintain one-to-one belongings of buyer reserves.