Former FTX CEO Sam Bankman-Fried (SBF) reportedly used the millions of dollars he gifted his father from Alameda Research to finance the legal team defending him against federal allegations.
According to a Forbes article citing sources with operational knowledge of FTX and Alameda, Bankman-Fried gave his father at least $10 million from Alameda in 2021. As part of a lifetime estate and gift tax exemption, the former FTX CEO sent the funds to Joseph Bankman, a Stanford Law professor who has ceased teaching classes due to his son’s legal troubles.
Sam Bankman-Fried’s Legal Defense Is Being Funded With Alameda Money He Gifted His Fatherhttps://t.co/7o21VwaE2n by @SarahNEmerson, @Steven_Ehrlich pic.twitter.com/ttbfa2kjmA
— Forbes (@Forbes) March 29, 2023
Former FTX is reportedly represented by Mark Cohen and Christian Everdell of the law firm Cohen & Gresser, whom he hired before his December extradition to the United States. At the time of publication, SBF was still free on bond, but many of his court appearances since his arraignment have focused on potentially restricting these conditions. A magistrate recently prohibited Bankman-Fried from using an internet-capable smartphone.
After FTX went down and Bankman-Fried was arrested, his family, including his father, mother, and close friends, became involved in the crypto exchange’s problems. Bankman reportedly hired his counsel in January, and he and others have been identified as potential subpoena targets in FTX’s bankruptcy case.
In February, federal prosecutors issued a superseding indictment containing 12 criminal counts against SBF. On March 28, the indictment was amended to include allegations that he spent $40 million corrupting a Chinese government official.
Other allegations include fraud-related conspiracy counts, wire fraud, and securities fraud counts. Bankman-Fried entered a not-guilty plea in December, and the trial is scheduled to commence in October.
