FTX sues Sam Bankman-Fried's parents, aims to claw back some of the million in gifts and property

FTX sues Sam Bankman-Fried’s parents, aims to claw back some of the $26 million in gifts and property

Published

1 year ago

September 19, 2023

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Bankrupt crypto exchange FTX is looking to claw back luxury property and “millions of dollars in fraudulently transferred and misappropriated funds” from the parents of Sam Bankman-Fried, the exchange’s disgraced ex-CEO and founder.

In a Monday court filing, lawyers representing the bankruptcy estate of the failed exchange alleged that Allan Joseph Bankman and his wife, Barbara Fried, “exploited their access and influence within the FTX enterprise to enrich themselves, directly and indirectly, by millions of dollars.”

The lawsuit, which was filed in a U.S. District Court in Delaware, goes on to claim that “despite knowing or blatantly ignoring that the FTX Group was insolvent or on the brink of insolvency,” Bankman and Fried discussed with their son the transfer of a $10 million cash gift and a $16.4 million luxury property in The Bahamas.

The suit alleges that as early as 2019, Sam’s father also directly participated in efforts to cover up a whistleblower complaint which threatened to “expose the FTX Group as a house of cards.” The filing also details emails written by Bankman in which he complained to the FTX US Head of Administration that his annual salary was $200,000, when he was “supposed to be getting $1M/yr.”

That grievance was ultimately elevated to his son in an email, according to the lawsuit: “Gee, Sam I don’t know what to say here. This is the first [I] have heard of the 200K a year salary! Putting Barbara on this.”

The filing characterizes the correspondence as Bankman lobbying his son to “massively increase his own salary.” Within two weeks, the suit claims that Bankman-Fried had collectively gifted his parents $10 million in funds coming from Alameda, and within three months, the couple was deeded the $16.4 million property in The Bahamas.

According to the partially-redacted filing, Bankman-Fried’s parents also “pushed for tens of millions of dollars in political and charitable contributions, including to Stanford University, which were seemingly designed to boost Bankman’s and Fried’s professional and social status.” Fried is also accused of encouraging her son and others within the company to avoid, if not violate, federal campaign finance disclosure rules by “engaging in straw donations or otherwise concealing the FTX Group as the source of the contributions.”

Bankman-Fried’s parents are legal scholars who taught at Stanford Law School. His mother is an expert on ethics, while his father specializes in taxes. Bankman-Fried himself independently faces multiple wire and securities fraud charges related to the alleged multibillion-dollar FTX fraud.

Federal prosecutors and regulators allege that Bankman-Fried was the driver of “one of the biggest financial frauds in American history,” in the words of U.S. Attorney Damian Williams. The Justice Department has charged the former FTX CEO with using billions of dollars in customer money to fund VC investments, buy property and make political donations. Bankman-Fried has pled not guilty to all charges, and his criminal trial kicks off on Oct. 3 in Manhattan.

Bankman and Fried “either knew — or ignored bright red flags revealing — that their son, Bankman-Fried, and other FTX Insiders were orchestrating a vast fraudulent scheme,” the lawsuit said.

FTX’s new leadership team has spent months trying to piece back together billions of dollars in missing assets belonging to the digital asset exchange.

The exchange’s lawsuit against Bankman-Fried’s parents asks for a mix of compensatory relief, including punitive damages resulting from Bankman and Fried’s “conscious, willful, wanton, and malicious conduct,” as well as the return of any property or payments made to the pair from FTX. If a judge rules in favor of the bankrupt exchange, it is unclear how the clawbacks might affect Bankman and Fried’s ability to pay for their son’s legal fees as he heads to trial next month.

Legal counsel for Bankman and Fried said in a written statement to CNBC that FTX’s Tuesday’s filing “is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins,” adding that “these claims are completely false.”

“Mr. Ray and his massive team of lawyers, who are collectively running up countless millions of dollars in fees while returning relatively little to FTX clients, know better,” continues the statement from Bankman and Fried’s attorneys.

Stanford University did not immediately respond to CNBC’s request for comment.

Environment

Stripe cuts 300 jobs in product, engineering and operations

Published

2 hours ago

January 21, 2025

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Stripe cuts 300 jobs in product, engineering and operations

The Stripe logo on a smartphone with U.S. dollar banknotes in the background.

Budrul Chukrut | SOPA Images | LightRocket via Getty Images

Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.

The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.

A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.

McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”

“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.

In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.

Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.

In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.

Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.

WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal

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Rivian is offering up to $6,000 to upgrade your R1S or R1T

Published

2 hours ago

January 21, 2025

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Rivian is offering up to ,000 to upgrade your R1S or R1T

Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.

Rivian R1S and R1T upgrade deal offers up to $6,000

Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.

After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.

Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.

With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.

Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:

Tri with Max battery: $6,000 USD / CAD 8,600
Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
Dual with Max battery: $3,000 USD / CAD 4,300

The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.

After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”

Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.

The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.

Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.

Electrek’s Take

Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.

Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.

Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.

Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.

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Environment

Hyundai IONIQ 5 and IONIQ 9 lose the $7,500 EV tax credit: Here’s how you can still get it

Published

4 hours ago

January 21, 2025

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Hyundai IONIQ 5 and IONIQ 9 lose the ,500 EV tax credit: Here's how you can still get it

In a sudden reversal, Hyundai’s new IONIQ 5 and IONIQ 9 EVs no longer qualify for the $7,500 US tax credit. Although this is a major blow to one of the top-selling EV brands in the US, there is still a way you can get the credit. Here’s how.

Hyundai EVs lose US federal tax credit in 2025

After setting another new US retail sales record last year, its fourth straight, Hyundai expected 2025 could be even bigger.

“With exciting new models like the IONIQ 9 and increased US production ramping up at our new Hyundai Motor Group Metaplant America in Georgia, I’m confident this momentum will continue,” Hyundai Motor North America CEO Randy Parker said.

Earlier this month, Hyundai announced its new 2025 IONIQ 5 and IONIQ 9, both made in the US, qualified for the $7,500 federal EV tax credit.

This was significant news because it was the first time Hyundai qualified since the Inflation Reduction Act (IRA) passed in 2022.

The upgraded 2025 IONIQ 5 and Hyundai’s three-row IONIQ 9 were among 25 EVs that qualified for the credit in early January.

According to the updated list from the Department of Energy (DOE) last week, Hyundai no longer has eligible EV models. The only Hyundai Motor Group (including Kia and Genesis) electric cars that qualify are the 2025 Kia EV6 and 2026 Kia EV9. Genesis, Hyundai’s luxury brand, also lost eligibility.

Hyundai began production at its new $7.6 billion EV plant in Georgia in October. The new 2025 IONIQ 5 was the first to roll off the assembly line, which will be joined by Hyundai’s three-row IONIQ 9.

Last year, Hyundai said it expected US-built models would qualify for a partial $3,750 credit until its battery unit with SK On came online, which was expected sometime in 2025.

Kia builds the new 2025 EV6 and three-row EV9 at its West Point, GA plant, enabling it to still qualify for the credit.

Meanwhile, Hyundai is still passing the $7,500 EV tax credit on through leasing. With leases starting as low as $199 per month, the new 2025 IONIQ 5 is still cheaper than a new Toyota RAV4.

With a bigger 84 kWh battery, the 2025 IONIQ 5 has a driving range of up to 328 miles, up from 303 miles in the outgoing model, which had a 77.4 kWh battery. It also gains noticeable design upgrades and now includes an NACS port for charging at Tesla Superchargers.

The IONIQ 5 was already the fourth-top-selling electric vehicle in the US last year. With more range, an upgraded design, and a Tesla NACS port, it will be even more attractive in 2025.

2025 Hyundai IONIQ 5 Trim	EV Powertrain	Driving Range (miles)	Starting Price*
IONIQ 5 SE RWD Standard Range	168-horsepower rear motor	245	$42,500
IONIQ 5 SE RWD	225-horsepower rear motor	318	$46,550
IONIQ 5 SEL RWD	225-horsepower rear motor	318	$49,500
IONIQ 5 Limited RWD	225-horsepower rear motor	318	$54,200
IONIQ 5 SE Dual Motor AWD	320-horsepower dual motor	290	$50,050
IONIQ 5 SEL Dual Motor AWD	320-horsepower dual motor	290	$53,000
IONIQ 5 XRT Dual Motor AWD	320 horsepower dual motor	259	$55,400
IONIQ 5 Limited Dual Motor AWD	320-horsepower dual motor	269	$58,100

2025 Hyundai IONIQ 5 prices and range by trim (*includes $1,475 destination fee)

Hyundai launched a new promo last week. It offers those who buy or lease the new 2025 IONIQ 5 a free ChargePoint Level 2 EV charger. Alternatively, you can choose a $400 charging credit.

Are you ready to test Hyundai’s new electric vehicles for yourself? We can help you get started. Check out our links below to find deals on Hyundai, Kia, and Genesis EVs at a dealer near you today.

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