SBF's parents are good at nagging? Giving money and a house is not enough, SBF's dad: Only giving me $200,000 salary a year?

Recently, the reorganized team at FTX has filed a lawsuit against SBF's parents, claiming that both have been heavily involved in FTX and carry significant responsibilities, and therefore should be held accountable to creditors for their interests. According to documents, SBF's father even emotionally blackmailed SBF, complaining that the salary given to him was too low.

SBF's Father Complains: Only $200,000 Annual Salary for Me?

In the lawsuit, it was mentioned that in January 2022, SBF's father, Allan Joseph Bankman, complained to the executive director of FTX US about his salary being listed as $200,000 per year on his pay stub, stating that he should be receiving a $1 million annual salary starting from the following year.

Allan Joseph Bankman also complained to SBF via email, saying, "Sam, I don't know what to say. This is the first time I've heard about a $200,000 annual salary! I'll have Barbara, SBF's mom, handle this matter." The lawsuit indicated that this was SBF's father lobbying for a significant increase in his salary.

When Parents Reap Benefits, but the Money Comes from…

According to the lawsuit, SBF gave his parents $10 million within two weeks, with the funds coming from Alameda, a sister company of FTX. Even with funding provided by FTX, the couple purchased a $16.4 million property in the Bahamas, spending over $90,000 on this property. SBF's father, Allan Joseph Bankman, also received 4.5 million shares from an FTX affiliate and 1,008,000 stock options from FTX Trading.

Why Would Parents Emotionally Blackmail Their Children?

Parents resorting to emotional blackmail towards their children can stem from various reasons. Emotional blackmail is a strategy that attempts to influence others to act in accordance with one's wishes through persuasion, intimidation, guilt, threats, or manipulation. Here are some possible reasons:

• Unconscious Behavior – Some parents may be unaware that their behavior constitutes emotional blackmail. They may have learned these behavior patterns from their own parents, so it may seem "normal" to them.
• Need for Control – Some parents may fear losing control, especially as their children seek more independence. Emotional blackmail can be seen as a means to make children act as they desire.
• Immature Emotional Coping Skills – If parents lack strong emotional regulation abilities themselves, they may resort to emotional blackmail to fulfill their own needs or avoid confronting their emotions.
• Overreliance on Children – At times, parents may overly rely on their children to meet their emotional needs, making them more prone to using emotional blackmail to ensure their children's attachment and support.
• Protection or Fear – Some parents may genuinely believe they know what is best for their children and use emotional blackmail to protect them or prevent them from making potentially harmful decisions.
• Unresolved Past Trauma – Some parents may carry unresolved emotional trauma or issues, which may drive them to emotionally blackmail their children as an unhealthy coping mechanism.

Introduction of SBF's Parents and Specific Allegations Against Them

SBF's Father, Allan Joseph Bankman

• Bankman is a tenured professor at Stanford Law School specializing in tax law.
• It is alleged that he leveraged his relationship with his son, Samuel Bankman-Fried (founder of FTX), to become an insider within the FTX group.
• SBF's father is purported to play a significant advisory role in the business and legal affairs of the FTX group. He was engaged as an unpaid legal advisor responsible for providing advice on "general corporate and tax matters."
• In addition to his formal role, SBF's father is alleged to wield broad powers in making decisions for the FTX group, effectively acting as an executive, director, and/or manager.
• Documents state that SBF's father received millions in gifts and real estate and enjoyed luxurious accommodations, even appearing in Super Bowl ads.
• SBF's father is also accused of directing substantial donations from the FTX group to chosen causes, including Stanford University, and using FTX group funds to provide lavish gifts to friends and family.

SBF's Mother, Barbara Fried

• SBF's mother is also a professor at Stanford Law School and is believed to be deeply involved in the operations and decision-making of the FTX group.
• She is described as a "non-criminal type of criminal accomplice" and is alleged to be a significant advisor in FTX group's political donation efforts.
• SBF's mother is accused of spearheading multi-million-dollar political and charitable donations, seemingly to enhance her and SBF's professional and social standing.
• Documents state that SBF's mother encouraged concealing the sources of political donations to circumvent federal campaign finance disclosure requirements.

Joint Allegations Against SBF's Parents

• Both of SBF's parents are accused of discussing and receiving significant financial gifts and property transfers from the FTX group, even as the group faced bankruptcy.
• They are alleged to have known or turned a blind eye to the fact that the FTX group engaged in fraudulent activities and was on the brink of insolvency.
• The documents claim that both defendants benefited from funds and assets of the FTX group, to the detriment of the group's clients and other creditors.
• These allegations form the basis of the plaintiff's claims against the defendants for fraudulent transfers, breach of fiduciary duty, and other alleged wrongful acts. The filing seeks to hold the defendants accountable for the alleged misconduct and recover assets for the creditors of the FTX group.