SBF's parents sued for compensation, responsible for FTX tax affairs and political donations.

FTX reorganizes its team and demands the misappropriated funds to be returned. They also request the court to impose punitive damages on SBF's parents for their malicious behavior, directly pointing out that SBF's father, Joseph Bankman, has deep involvement with FTX and was also one of the negotiators in the attempted acquisition by Binance.

FTX Reorganization Team Seeks Return of Funds, Separate Fines

CoinDesk cited legal documents indicating that the FTX bankruptcy reorganization team has filed a lawsuit against SBF's parents, Joseph Bankman and Barbara Fried, seeking the return of millions of dollars allegedly misappropriated from customers and fraudulently transferred.

FTX also seeks punitive damages against SBF's parents for their malicious actions.

SBF's Father is FTX's Tax Advisor

SBF's father, Joseph Bankman, with his understanding of tax law and FTX's convoluted corporate structure, was able to easily transfer $10 million in cash from Alameda to himself and his wife.

The documents state:

Joseph Bankman and Barbara Fried, under the guise of their experience as law professors, did not assist the FTX group as claimed but rather to plunder for themselves and their pet projects.

The reorganization team also believes Joseph Bankman should have been well aware of FTX's precarious financial situation.

SBF's Mother is a Political Expert

The documents also mention SBF's mother, Barbara Fried, as the "key figure" behind a series of political donations made by SBF.

In addition, Joseph Bankman is a senior advisor to the FTX Foundation, earning a $200,000 annual salary, owning over $18 million in real estate in the Bahamas, and leading FTX's $5.5 million donation to Stanford University.

The documents further indicate that Joseph Bankman was one of the negotiating members when Binance attempted to acquire FTX:

Bankman was one of the group members who met with Binance on November 9, 2022, the day before FTX declared bankruptcy, and also had plans to meet with the Prime Minister of the Bahamas.

SBF's criminal trial is scheduled for October and March of next year, and he has recently pleaded not guilty to all charges.