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FTX's Collapse Leads To Subpoenas For Co-Founder's Immediate Family In Quest For Missing Millions

Published 26/01/2023, 22:27
Updated 26/01/2023, 23:40
© Reuters.  FTX's Collapse Leads To Subpoenas For Co-Founder's Immediate Family In Quest For Missing Millions

Benzinga - Cryptocurrency exchange FTX was seeking to subpoena several individuals, including the immediate family of co-founder Sam Brinkman-Fried, to investigate the alleged misappropriation of funds.

In a legal filing made on Wednesday, FTX's lawyers stated Bankman-Fried's brother, mother and father, who served as advisors to the company, should be subpoenaed to testify in court.

The filing stated, "Key questions remain, however, concerning numerous aspects of the Debtors’ finances and transactions... the debtors have not received meaningful engagement or any response from certain individuals."

FTX also wanted to subpoena former executives and Bankman-Fried.

Also Read: Blockchain Infrastructure Company Spatial Labs Raises $10M In Seed Funding

The filing included a number of other allegations, including:

• Guarding Against Pandemics, the lobbying organization of Bankman-Fried's brother Gabriel Bankman-Fried, purchased a multi-million dollar property near in Washington, D.C. using misappropriated customer funds.

• Bankman-Fried's mother's political action committee, Mind the Gap, received donations from Bankman-Fried and other FTX staff.

• Both parents resided in a $16.4 million house in the Bahamas, which was titled in their names, despite the intention to be use the house as company property.

FTX was also seeking to subpoena Caroline Ellison, the chief executive of trading firm Alameda Research and Gary Wang, FTX co-founder, as they had "expressly declined to provide the requested information."

The request will be discussed at a hearing on Feb. 8 in the U.S. Bankruptcy Court in Delaware.

Read Next: Hive Ransomware Dismantled: FBI Confirms Disruption Of Cybercrime Ecosystem

Photo: Billion Photos via Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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