10 months ago
The parents of Sam Bankman-Fried financially profited disconnected his 'web of deceit' successful which he defrauded FTX customers retired of a full of $8billion.
He committed one of nan biggest financial frauds successful American history - by utilizing FTX customer deposits to prop up risky investments successful fledgling hedge money Alameda, which was tally pinch his ex-girlfriend Caroline Ellison.
The 31-year-old billionaire was convicted of two counts of fraud and 5 counts of conspiracy. He now faces a situation condemnation of up to 110 years.
His parents, longtime Stanford Law School professors Joe Bankman and Barbara Fried, stood by him contempt nan allegations and were a changeless beingness during nan high-profile proceedings which began connected October 4.
It emerged Bankman-Fried talented them cash, a location successful nan Bahamas and a $200,000 net occupation pinch his company. While they helped put up his $250million bail, paid his information and ineligible fees and allowed him to unrecorded successful their location adjacent field while nether location arrest.
Bankman-Fried's parents arriving at Manhattan Federal Court connected Wednesday to support their son
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Bankman-Fried's FTX was worthy $32billion earlier its illness successful November past twelvemonth and he was lauded arsenic nan early of finance, crypto's Steve Jobs.
But arsenic prosecutors based on successful court, he 'lied to nan world' because successful reality he was simply stealing FTX customers' money.
The 'house of cards' came crashing down past twelvemonth amid tumbling crypto prices and media reports raising questions astir really overmuch of nan $32billion valuation was based connected FTT, FTX's ain crypto token.
As customers tried to retreat their money it created nan crypto balanced of a tally connected a bank, and FTX unopen down.
Bankman-Fried gave his parents Joe and Barbara $10million arsenic good arsenic a luxury flat successful nan Bahamas worthy $16.4million.
His begetter moreover discontinue his occupation astatine Stanford and went to activity for FTX for a net of $200,000.
But Joe is said to person complained that this was a fraction of nan $1million he was expecting, according to tribunal documents.
The Stanford University rule professor moaned that he was being paid astir $16,500 a month, erstwhile he anticipated $80,000.
He took his gripe to his son, earlier looping successful his mother and telling him: 'Gee Sam, I don't cognize what to opportunity here.
'This is nan first [I] person heard of nan 200K a twelvemonth salary! Putting Barbara connected this.'
Although Barbara 'never had a general position astatine nan FTX Group'.
Weeks later, nan mates were talented $10million by Alameda Research, FTX's sister hedge fund, besides founded by their son, according to nan suit.
While wrong 3 months they were handed nan deed to a $16.4million location successful nan Bahamas.
Joe and Barbara person been sued by nan bankruptcy lawyers overseeing nan winding up of nan institution to claw backmost monies paid to them.
FTX laminitis Sam Bankman-Fried sworn successful arsenic he testifies successful his fraud proceedings connected October 27
Bankman-Fried hangs his caput successful this tribunal sketch aft he is handcuffed and taken into custody successful August
Prosecutor Nicolas Roos utilized his closing arguments to show nan assemblage that nan 31-year-old billionaire 'thought he was smarter and better' and could get distant pinch taking people's money
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Lawyers declare that Joe utilized chap Stanford University Law Professor Barbara to 'lobby' their boy to summation their salaries.
Barbara is besides accused of helping her boy 'avoid if not break national run finance disclosure rules' astir his governmental donations.
The mates person further been accused of helping screen up complaints from nan crypto exchange's erstwhile attorney.
Meanwhile Joe allegedly siphoned $5.5million successful donations to Stanford University successful bid to 'curry favor' pinch his employer, whilst 'showering' his family and friends pinch gifts.
The prestigious assemblage announced successful September that it would return nan costs of each gifts collected from FTX and related companies.
A scope of fraud and money laundering charges were brought against Bankman-Fried successful December and his parents are said to person worked to find a measurement to salary his information and ineligible fees up of nan trial.
They besides reportedly bought him a German Shepherd puppy to cheer him up.
The money for his costly ineligible defense came from nan 'multi-million-dollar gift' he gave to his parents, according to Forbes.
He was released connected a $250million enslaved successful December acknowledgment to thief from his parents who mostly secured it against their spot successful Palo Alto, California.
Stanford scholars Larry Kramer, a erstwhile dean of Stanford's rule school, and Andreas Paepcke, a Stanford machine scientist, each signed connected arsenic guarantors worthy $500,000 and $200,000 too.
Bankman-Fried was nether location apprehension astatine his parents spot located adjacent nan Stanford University campus.
Prosecutor Roos accused Bankman-Fried of 'celebrity chasing', showing jurors nan celebrated image of him astatine nan 2022 Super Bowl pinch vocalist Katy Perry (left) and Orlando Bloom (second from left)
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But US District Judge Lewis Kaplant revoked his bail successful August aft uncovering that nan erstwhile billionaire apt tampered pinch witnesses astatine slightest twice.
His parents continued to move up to almost each tribunal proceeding arsenic they demonstrated their support.
Joe and Barbara are successful nan mediate of a civilian lawsuit against FTX's existent guidance who person accused them of utilizing institution costs to enrich themselves and are trying to claw backmost nan money paid to them.
But nan mates are not facing criminal charges.
More than $7billion of nan money stolen by FTX has now been recovered but those who mislaid retired will not get it each backmost owed to changes successful nan worth of cryptocurrency betwixt now and past November.
