Sam Bankman-Fried: Parents sued by bankrupt crypto exchange FTX over ‘misappropriated funds’
The parents of a man who founded a cryptocurrency exchange which later went bankrupt are being sued by the company, alleging the pair syphoned off millions of dollars from FTX’s funds to enrich themselves.
Allan Joseph Bankman and his wife Barbara Fried are accused of helping to set up a scheme where their son Sam Bankman-Fried gave them a $10m (£8m) “gift”.
And the couple used $16m (£13m) in FTX funds to buy a luxury home in the Bahamas, even as the firm teetered on the brink of collapse, it is claimed.
Bankman, a Stanford law professor and tax law expert, and Fried, a retired Stanford law professor, also pushed the exchange to make tens of millions of dollars in charitable contributions to their “pet causes” and the university, FTX said.
Sam Bankman-Fried
The company alleged Bankman-Fried ran it as a “family business” and misappropriated billions of dollars in customer funds to benefit a small circle of insiders, including his parents.
However, Bankman-Fried has insisted his parents “weren’t involved in any of the relevant parts” of the business.
FTX, which filed bankruptcy last November owing $8.7bn (£7bn) to its customers with Bankman-Fried resigning as chief executive, is trying to recover damages allegedly caused by the couple.
FTX’s case
The lawsuit states: “Despite presenting itself to investors and the public as a sophisticated group of cryptocurrency exchanges and businesses, the FTX Group was a self-described ‘family business’.
“Bankman played a key role in perpetuating this culture of misrepresentations and gross mismanagement and helped cover up allegations that would have exposed the fraud committed by the FTX insiders.
“And together, Bankman and Fried syphoned millions of dollars out of the FTX Group for their own personal benefit and their chosen pet causes.”
Fried caused Bankman-Fried as well as other executives to contribute millions of dollars to a political action committee that she co-founded, according to FTX.
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Bankman-Fried pleads not guilty to fraud
Lawyers for the pair have denied the allegations saying they are completely false, adding: “This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins.”
Bankman-Fried has pleaded not guilty to charges that he defrauded FTX customers by using their funds to prop up his own risky investments.
He is currently detained in jail ahead of a trial set to begin in New York on 3 October.
Other former FTX executives have pleaded guilty to criminal charges.
More than $7bn (£5.6bn) in assets has been recovered by FTX to repay customers, and it is trying to get back more with lawsuits against FTX insiders and other defendants.
Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.
The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by 75% of the company’s shareholders.
It would be the largest corporate pay package in history.
However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.
He will be tasked with dramatically increasing the company’s valuation and operating profits.
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Musk closer to trillionaire status
Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.
Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.
As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.
And even if Musk falls short of some of these targets, he could end up earning a lot of money.
Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) – and while that means he has more money than anyone else on the planet, he isn’t the richest person in history… yet.
That title belongs to John D Rockefeller, the railroad titan who had a wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.
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The X Effect
Why?
Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).
It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.
Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.
Some believe there’s no one else like Musk.
More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.
“We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk … and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre.”
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Opposition
Not everyone is in favour of the pay package.
Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board’s ability “to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade”.
In a note, ISS said: “The high value of each tranche could also potentially undermine Musk’s desire to achieve all goals and create significant value for shareholders”, and that the goals “lack precision”.
Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.
There was speculation he would walk away from the business if the package was not agreed on.
ITV has revealed talks with Sky, the owner of Sky News, over the possible sale of its media and entertainment (M&E) division in a deal worth £1.6bn.
Sky News understands the approach centres on the potential creation of a UK-focused streaming giant.
The division takes in ITV’s current broadcast operations and channels, which are largely dependent on advertising revenue.
The talks do not include the company’s studios arm, which makes shows such as I’m A Celebrity… Get Me Out Of Here!
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“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place”, a statement by ITV to the London Stock Exchange said.
“A further announcement will be made in due course if appropriate”, it concluded.
ITV shares jumped by 15% in early trading in response to the statement.
The potential deal involves ITV’s channels but not the company’s production arm. Pic: PA
Sky, which is wholly owned by the US media and entertainment firm Comcast, declined to comment.
ITV released its statement after news of the discussions were first revealed by Bloomberg News.
Just hours earlier, the company’s latest financial results showed it was moving to save millions of pounds due to an advertising slowdown.
ITV reported delays to some programmes over the coming months to save costs as a result.
Sky is owned by the US company Comcast
It predicted a 9% decline in ad revenues across 2025, with the most recent trends being blamed on advertisers pulling back on spending in anticipation of the chancellor’s budget later this month.
It is understood that a possible deal between Sky and ITV would seek to create a larger, more attractive proposition for advertisers in the UK streaming sphere through a focus on UK audiences.
ITV has long been the subject of takeover speculation.
The latest came from the Reuters news agency earlier this year when it reported early-stage talks with Abu Dhabi-backed group RedBird IMI about a possible merger of their respective production businesses.
French media group Banijay was also reported to have held discussions about a possible offer for ITV’s studio business or a full takeover.
Elon Musk could be on track for a $1trn (£761bn) pay package – if Tesla meets a series of extremely ambitious targets over the next 10 years.
The world’s richest man has the potential to become a trillionaire after the controversial plans were approved by shareholders.
However, it won’t be easy. As part of the agreement, Musk will need to deliver 20 million Tesla vehicles over the next decade – more than double the number churned out over the past 12 years.
He will be tasked with dramatically increasing the company’s valuation and operating profits.
Another requirement is for Tesla to roll out one million AI-powered robots – despite the fact it hasn’t released a single one so far.
Musk will also need to come up with a succession plan on who will replace him as the chief executive of Tesla.
As each step is successfully completed, he will receive more company shares and his ownership stake will rise – potentially from 13% now to almost 29%.
And even if Musk falls short of some of these targets, he could end up earning a lot of money.
Figures from Forbes magazine suggest the 54-year-old already has a net worth of $493bn (£375bn) – and while that means he has more money than anyone else on the planet, he isn’t the richest person in history… yet.
That title belongs to John D. Rockefeller, the railroad titan who had wealth of $630bn (£480bn) back in 1913 – when adjusted for inflation.
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Could Elon Musk become the world’s first trillionaire?
Why?
Now is the moment Tesla wants to innovate, develop into robotics, self-driving and embrace the growth of artificial intelligence (AI).
It’s seeking a visionary leader to spearhead this move. And a lot of Tesla’s market value is tied up in this ambition.
Tesla’s board of directors, who oversee the management of the business, are adamant that only Musk can make the lofty ambitions a reality.
Some believe there’s no one else like Musk.
More shares in the company are “critical to keep Musk at the helm to lead Tesla through the most critical time in the company’s history”, said financial services firm Wedbush.
“We believe this was the smart move by the board to lay out these incentives/pay package at this key time as the biggest asset for Tesla is Musk … and with the AI revolution, this is a crucial time for Tesla ahead with autonomous and robotics front and centre.”
“Getting Musk’s pay package approved will be a big step towards advancing Tesla’s future goals,” Wedbush analysts wrote.
Opposition
Not everyone is in favour of the pay package.
Major investor advice firm Institutional Shareholder Services (ISS) warned the 10-year pay agreement reduces the board’s ability “to meaningfully adjust future pay levels in the event of unforeseen events or changes in either the performance or strategic focus of the company over the next decade”.
In a note, ISS said: “The high value of each tranche could also potentially undermine Musk’s desire to achieve all goals and create significant value for shareholders”, and that the goals “lack precision”.
Mr Musk has described ISS and another major adviser, Glass Lewis, as “corporate terrorists”.
There was speculation he would walk away from the business if the package was not agreed on.
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