In a late court filing on Monday, the bankruptcy estate of FTX sued the parents of founder Sam Bankman-Fried, seeking to recover millions of dollars that it alleges were fraudulently transferred and misappropriated.
In the 63-page lawsuit, the estate alleges that FTX was a self-described "family business" despite its appearance as a sophisticated cryptocurrency exchange, that was "fueled by fraud." Allan Joseph Bankman, Bankman-Fried's father, is a top tax law professor at Stanford Law School, and the lawsuit alleges that he played a key role in "perpetuating this culture of misrepresentations and gross management" and in covering up allegations that would have exposed the fraud.
