Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, were visibly emotional in a New York federal court after their son, the founder of FTX, was found guilty on seven counts of fraud and conspiracy. The charges carry a potential sentence of up to 110 years in prison.
As the jury announced the verdict, Barbara Fried fought back tears, while Joseph Bankman slumped over with his hand on his wife’s shoulder. After the courtroom cleared, the parents embraced and walked out silently, a stark contrast to Fried’s reported laughter in the courtroom last year.
The charges against their son come after the collapse of FTX, the cryptocurrency exchange he operated. Bankman-Fried and other executives allegedly diverted customer funds from the exchange to their hedge fund, Alameda Research, and personal accounts. They used the money to purchase expensive real estate in The Bahamas and make political donations.
Joseph Bankman and Barbara Fried, both professors at Stanford Law, were also implicated in the FTX scandal. FTX Trading filed a lawsuit against them, accusing them of extracting millions of dollars from the company for their own benefit. The lawsuit claimed that the couple accepted a $10 million cash gift and a $16.4 million property from FTX, despite knowing the company was on the verge of collapse. Bankman’s involvement with FTX included developing marketing materials and serving as a legal advisor.
Bankman and Fried reside in a luxurious home in the San Francisco Bay Area, where their son was required to stay during the trial. Bankman-Fried expressed gratitude for the continued support of his parents and others close to him, acknowledging the impact the case had on them.
The couple’s lawyers have vehemently denied the allegations made against them, calling them completely false. The FTX scandal has shaken the cryptocurrency community and raised concerns about the integrity of the industry. The guilty verdict against Bankman-Fried further highlights the need for stricter regulations and oversight in the rapidly evolving world of cryptocurrencies.
