Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried, have asked a court to dismiss a lawsuit by the bankrupt cryptocurrency exchange FTX seeking to recover funds it alleges were fraudulently transferred. FTX sought to “recover millions of dollars” from Bankman and Fried in Sept. 2023. Less than two months later, their son, Bankman-Fried, was found guilty on all seven charges of defrauding customers and the U.S. His sentencing is expected in March. Bankman and Fried, both professors at Stanford Law School, argued that Bankman did not have a fiduciary relationship with FTX and did not serve “as a director, officer, or manager,” and even if a fiduciary relationship existed with FTX to plausibly allege a breach, according to a Jan 15. court filing.
