Will Sam Bankman-Fried’s Parents Be Arrested Soon?

2.30pm ▪ 4 minute read ▪ by Luc Jose A.

Recent revelations from the Wall Street Journal have shed light on disturbing details about the family of Sam Bankman-Fried, the former CEO of crypto exchange FTX. Previously unpublished emails show that his parents, Alan Joseph Bankman and Barbara Helen Fried, as well as his brother Gabriel, played significant roles in the financial and political management of the company. This new information could further complicate the legal issues surrounding FTX’s spectacular collapse.

SBF Parents at the Center of Financial Crisis

The emails reveal that Alan Joseph Bankman, Sam’s father, was directly involved in the financial affairs of crypto exchange FTX. In September 2022, he communicated with tax lawyers at Fenwick & West to discuss tens of millions of dollars that Ryan Salame, then an FTX executive, had withdrawn from Alameda Research.

Alan Bankman has suggested characterizing these transactions as loans, a suggestion that could directly link him to the cryptocurrency company’s financial manipulations. Although his spokesman says he was unaware of the campaign finance law violations, a former Federal Election Commission chairman said the emails provide strong evidence of his knowledge of these transactions.

Barbara Helen Fried, Sam’s mother, is also involved in the saga. In August 2021, she asked her son for $92,000 to fund two projects as part of a new research initiative. The funds came directly from FTX, raising questions about whether she was using the cryptocurrency company’s resources for personal gain. Barbara’s lawyers argue that her advice was appropriate.

SBF’s Brother’s Influence on the FTX Crypto Exchange Saga

Gabriel Bankman-Fried, Sam’s younger brother, was a key player in FTX’s political funding network. Emails show he funneled contributions to Democratic politicians using funds from Sam’s personal fortune or directly from the FTX cryptocurrency exchange. Ryan Salame, who was sentenced to 90 months in prison for conspiring to make illegal political contributions, played a major role in these transfers. Gabriel also requested a $5 million contribution to Guarding Against Pandemics, an organization he founded.

Gabriel’s implications don’t end there. He advised Nishad Singh, former director of engineering at crypto exchange FTX, to make public donations to qualify for tax benefits. Singh, who was also involved in illegal donations, said his role was often limited to “clicking a button” to approve transactions.

The active roles played by Alan Joseph Bankman, Barbara Helen Fried and Gabriel Bankman-Fried in the FTX affair could have serious legal consequences. This information adds further pressure to the ongoing investigation and could impact future lawsuitsSam Bankman-Fried’s family now finds itself at the center of one of the most complex and controversial cases in cryptocurrency history.

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Luke Jose A.

Graduated in Sciences Po Toulouse and owner of a blockchain certification consultant issued by Alyra, I resumed the Cointribune adventure in 2019. Aware of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put in perspective the investors and companies that are facing this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.

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