FTX, a crypto exchange, has settled lawsuits against the parents of its founder, Sam Bankman-Fried (SBF), as revealed in a filing in the Bankruptcy Court for the District of Delaware.
The lawsuits have been dismissed without prejudice, according to the document filed in February.
Allan Bankman and Barbara Fried were involved in key aspects of FTX and its hedge fund, Alameda Research, which misappropriated funds from FTX customers. Their involvement in their son’s actions has been a topic of discussion for years.
SBF is currently serving a 25-year prison sentence, while his parents have not faced any public charges from the US government.
Financial Transactions with SBF’s Parents
When John J. Ray III took charge after the FTX collapse in November 2022, a forensic analysis revealed the involvement of SBF’s parents in the businesses. There were significant monetary transactions, including cash and real estate, between FTX and the family members.
Allan was noted to have worked in various capacities for FTX, while Barbara also received payments in cash and real estate from the company.
FTX settled the complaint against SBF’s parents “without prejudice,” indicating that they may re-file the complaint in the future if needed.
Settlements marked “without prejudice” are generally not admissible as evidence in court, providing protection for both parties involved in the dispute resolution process.