FTX, a now-bankrupt crypto exchange, is currently facing legal action from its bankruptcy lawyers. The lawyers have requested permission from Judge John Dorsey to subpoena family members of Sam Bankman-Fried to testify under oath regarding any financial benefits that may have accrued from the exchange’s business.
The lawyers also want to question several former executives in an effort to unearth any assets that can be used to repay the exchange’s bereft creditors.
According to Bloomberg, Bankman-Fried’s father, Joseph Bankman, who is a law professor, offered tax advice to FTX employees.
Meanwhile, Bankman-Fried’s brother, Gabriel, engaged in political lobbying from a property in Washington D.C. Bankman-Fried’s wife, Barbara Fried, allegedly received funds from FTX for a political action committee called Mind the Gap. Fried also spent a significant amount supporting Democratic candidates in the 2022 election.
Despite recently discovering about $5 billion to compensate users, the lawyers continue their aggressive pursuit of outstanding FTX assets.
FTX’s new CEO, John J. Ray III, has stated that a new task force is investigating the feasibility of reopening the exchange’s doors to obtain the necessary liquidity to reimburse customers.
The brothers’ involvement in the initiative reflects their commitment to a philosophy called effective altruism.
Using FTX cash, they made various investments, including donating $12 million to a California ballot initiative aimed at detecting emerging viruses and funding the political campaign of a biosecurity expert from Oregon.
Their political action committee, Protect Our Future, spent $28 million on Democratic candidates in 2022. The non-profit organization Guarding Against Pandemics used $1 million to fund lobbying efforts for a new pandemic plan on Capitol Hill.
After the collapse of FTX in November 2022, Gabriel Bankman-Fried resigned from his position at Guarding Against Pandemics.
An adviser to the brothers stated that he was convinced that Gabriel had a genuine interest in pandemic prevention, but he was unsure about Sam’s interest in the matter.
