The latest report by Bloomberg claimed that the launch of the FTX exchange was possible because of the SBF’s father & mother’s high profile links.
FTX was a popular crypto exchange before Nov 2022. Allegedly FTX exchange co-founder & ex-CEO Sam Bankman-Fried (SBF) misused customers’ funds for personal benefits. Following a report by the Coindesk media earlier in the days of Nov 2022 , people came to know about the collapsed financial position of the FTX & its sister firm Alameda Research. Reportedly $8 billion funds were missing which were belonging to FTX customers.
On 14 Sep 2023, Bloomberg published a report to bring light on the role of SBF’s parent in the launch of the FTX exchange.
As per the report, SBF’s parents Joseph Bankman and Barbara Fried helped SBF in the exchange’s marketing, advertising, and the launch of the FTX Token (FTT).
Bankman and Fried were well-known personalities at Stanford University. In the past, for three decades they taught in law school. As per the report, if his parents hadn’t helped SBF in the FTX exchange launch then SBF probably wouldn’t have succeeded in launching the now-bankrupt crypto platform.
It is worth it to note that following the bankruptcy of the FTX exchange, SBF’s parents denied any role or involvement in the FTX-related activities.
However, reports on the FTX exchange on behalf of the investigations showed that his parents grabbed nearly $26 million worth of profit from the FTX exchange in the form of cash, real estate, etc.
FTX & Bankruptcy
However, FTX went bankrupt because of its bad financial management & misuse of the customer’s funds for personal benefits but FTX ex-CEO SBF blamed Binance CEO Changpeng Zhao) for the whole incident, as he announced that he will sell his FTX token (FTT) holdings.
In response, Binance CEO suggested SBF focus on himself instead of others.
Initial Investigations showed that SBF was the main culprit behind the whole FTX business but so far no fraud charges have been proved, as SBF lawyers are intelligent enough to protect SBF from any guilt.
Currently, SBF is in jail, as he violated the $250M bail bond agreement. Reportedly he tried to interfere in the FTX crypto fraud case and tried to convince witnesses to give statements in personal favours in the court.
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