According to court documents in the FTX bankruptcy case, the company’s lawyers are seeking to subpoena FTX co-founder Sam Bankman-Fried, his brother Gabriel Bankman-Fried, and their parents, Joseph Bankman and Barbara Fried. In addition, the lawyers intend to question some of Bankman-Fried’s top aides, including FTX co-founder Gary Wang, former Alameda Research CEO Caroline Ellison, former COO Constance Wang and former CEO of stock engineering, Nishad Singh.
FTX lawyers push for subpoena of co-founder, associates, parents and brother
Lawyers for FTX Trading Ltd. and the bankruptcy caseThe official creditors’ committee filed a motion that aims to question Sam Bankman-Fried (SBF), his parents, his brother and some of the former chief executive’s top lieutenants. The lawyers contend that specific insiders associated with the Bankman-Fried deals could provide much-needed information on financial matters.
“Certain insiders are currently cooperating with debtors to provide important information. But others are not and, therefore, the authorization to issue subpoenas to those who have the missing information is essential for the recovery efforts of the debtors and the committee, ”the joint motion details.
FTX’s current CEO, John J. Ray III, told Congress that Joseph Bankman and “the family certainly received payments” from FTX. Bankman and Barbara Fried have not been charged with any wrongdoing, but the recent court filing claims they both had associations with the company. The filing alleges that Fried’s political action committee (PAC), Mind the Gap, received funding from FTX. Barbara Fried “has completely ignored the requests,” the joint motion reveals. Bankman allegedly provided tax advice to staff and was involved in linking FTX with the company’s first litigation firm, the court filing explains.
“Experts are best positioned to help” in the case, FTX lawyers insist in the latest filing. The document states that the lawyers want to question Gabriel Bankman-Fried, SBF’s brother. The presentation talks about Bankman-Fried’s brother’s non-profit organization, Guarding Against Pandemics. It mentions alleged political lobbying that allegedly took place near the US Capitol on a “multi-million dollar property,” which “debtors believe was purchased with embezzled client funds.” In addition to Bankman-Fried’s brother and parents, the application names Constance Wang, Caroline Ellison, Gary Wang and Nishad Singh.
US Bankruptcy Court Judge for the District of Delaware, John Dorsey, must approve the subpoena request for SBF and members of its inner circle. Bankman-Fried has been accused by a federal grand jury in Manhattan and faces charges of “Conspiracy to Commit Wire Fraud, Wire Fraud, Conspiracy to Commit Commodity Fraud, Conspiracy to Commit Securities Fraud, Conspiracy to Commit Money Laundering, and Conspiracy to Defraud the Federal Commission Electoral and committing financial violations”. SBF is currently awaiting trial on the charges, which is scheduled for October 3, 2023.
“The debtors have received no significant commitment or any response from Singh or Mr. Gabriel Bankman-Fried,” FTX’s lawyers added in the filing.
What do you think will be the result of this judicial request? Share your thoughts in the comments below.
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