According to court documents in the FTX bankruptcy case, the company's lawyers are attempting to subpoena FTX co-founder Sam Bankman-Fried, his brother Gabriel Bankman-Fried, and his parents, Joseph Bankman and Barbara Fried. In addition, the lawyers plan to interview some of Bankman-Fried's key deputies, including FTX co-founder Gary Wang, former Alameda Research CEO Caroline Ellison, former chief operating officer Constance Wang and the exchange's former technical director Nishad Singh. FTX Lawyers Push for Subpoena of Co-Founder, Employees, Parents and Brother Lawyers for FTX Trading Ltd. and the bankruptcy case's official creditors' committee filed a motion seeking to challenge...
According to court documents in the FTX bankruptcy case, the company's lawyers are attempting to subpoena FTX co-founder Sam Bankman-Fried, his brother Gabriel Bankman-Fried, and his parents, Joseph Bankman and Barbara Fried. In addition, the lawyers plan to interview some of Bankman-Fried's key deputies, including FTX co-founder Gary Wang, former Alameda Research CEO Caroline Ellison, former chief operating officer Constance Wang and the exchange's former technical director Nishad Singh.
Lawyers for FTX Trading Ltd. and the bankruptcy case ’s official creditors’ committee submitted a motion seeking to challenge it Sam Bankman-Fried (SBF), his parents, his brother and some of the former CEO's top lieutenants. The lawyers claim that certain insiders connected to Bankman-Fried's dealings could provide much-needed insight into financial matters.
"Certain insiders are currently cooperating with the Debtors to provide important information. But others are not, and therefore authorization to issue subpoenas to those with the missing information is critical to the Debtors' and the Committee's recovery efforts," the joint motion states.
The current FTX CEO John J. Ray III, told Congress said Joseph Bankman and “the family certainly received payments” from FTX. Bankman and Barbara Fried have not been accused of any wrongdoing, but recently filed lawsuits allege they were both connected to the company. The filing alleges that Fried's political action committee (PAC), Mind the Gap, received funds from FTX. Barbara Fried “completely ignored the requests,” the joint motion states. Bankman allegedly advised employees on tax issues and was involved in connecting FTX with the company's first litigation firm, court papers say.
“The insiders are best positioned to support the case,” FTX lawyers continued to insist in the latest filing. The document notes that lawyers want to question Gabriel Bankman-Fried, SBF's brother. The file talks about Bankman-Fried's brother non-profit, protection against pandemics. It mentions the alleged political Lobbying that reportedly took place near the U.S. Capitol on a “multimillion-dollar property” that “the debtors believe was purchased with embezzled customer funds.” In addition to Bankman-Fried's brother and parents, Constance Wang, Caroline Ellison Gary Wang and Nishad Singh are mentioned in the application.
U.S. Bankruptcy Court Judge for the District of Delaware John Dorsey must grant the subpoena request for SBF and members of his inner circle. Bankman Fried was accused by a federal grand jury in Manhattan and faces charges of "conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and to commit campaign financial violations." SBF currently awaiting trial on fees, scheduled for October 3, 2023.
“The Debtors have not received any meaningful engagement or response from Singh or Mr. Gabriel Bankman-Fried,” FTX lawyers added in the filing.
What do you think will be the outcome of this legal inquiry? Share your thoughts in the comments below.
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