Sam Bankman Freud’s mother and his former, on-again, off-again girlfriend Caroline Ellison are refusing to cooperate with the investigation into the collapse of failed cryptocurrency exchange FTX, according to lawyers for the now-bankrupt company.
Former FTX executives, including co-founder Gary Wang, are also reportedly lashing out at investigators working on behalf of the company in an effort to recover assets in hopes of compensating customers affected by the crypto exchange’s implementation. have been.
There were allegations. Filed in court papers which were filed on Wednesday and cited on Friday. By news site Insider.
The Post has sought comment from representatives of Bankman Freud’s mother, Barbara Freud, Ellison and Wang.
“Certain insiders are currently cooperating with creditors to provide important information,” FTX’s lawyers wrote in a filing filed in federal bankruptcy court in Delaware earlier this week.
“But others are not, and thus allowing those with missing information to come forward is critical to creditors and the committee’s collection efforts,” the lawyers wrote.
FTX is seeking documents and information from Freud, 71. her husband, fellow Stanford law professor Joseph Bankman, 68; their younger son and Bankman Freud’s brother Gabriel Bankman Freud, 29; Alison, 28; FTX co-founder Nishad Singh, 27, and Wang.
The Company intends to compel the aforementioned parties to provide documents related to its investigation.
While FTX acknowledges that some parties have responded to its letters, none have come forward voluntarily to provide the requested documents and information, the filing states.
Singh, a member of Sam Banksman Freud’s inner circle who headed engineering at FTX, met with federal prosecutors earlier this month — a possible sign that he may cooperate with their criminal investigation. Considering
Singh has not been charged in connection with the FTX enforcement, but his appearance suggests he is seeking a plea deal. According to Bloomberg News.
Alison was the CEO of Alameda Research, a hedge fund founded by Sam Bankman Freud. It is alleged that Bankman-Fried diverted billions from customer funds held with the FTX crypto exchange to Alameda Research.
Allison and Wang both pleaded guilty to fraud charges last month. He is said to be cooperating with federal investigators.
Bankman Freud’s parents were listed as the owners of a $16.4 million home in the Bahamas. He claimed he was in the process of selling the property back to FTX before the company filed for Chapter 11 bankruptcy in early November.
Sam Bankmanfried, who is under house arrest in his parents’ $4 million Palo Alto home, has pleaded guilty to several charges in a federal indictment, including money laundering and wire fraud. His parents and his brother are yet to be charged.
If convicted, Sam Bankmanfried, who was released on $250 million bond, could face up to 115 years in prison.
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