As the eagerly awaited trial of Sam Bankman-Fried (SBF) draws near, a host of pressing questions has taken center stage. Among these questions, one stands out prominently: What role, if any, do Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, play in this high-stakes legal battle?
John Reed Stark, a former executive at the United States Securities and Exchange Commission (SEC), known for his straightforward approach, has raised concerns regarding the commitment of both the Commission and the Department of Justice (DOJ) in prosecuting SBF’s parents. FTX Derivatives Exchange has already initiated legal action against them.
Drawing upon his extensive experience as an attorney with the SEC, where he served for over two decades, Stark has expressed his bewilderment at the absence of SBF’s parents as defendants in the case. He poses a fundamental question: Why have neither the U.S. Department of Justice nor the U.S. Securities and Exchange Commission added Joseph Bankman and Barbara Fried as defendants?
SBF’s Mom and Dad: Questions About Their Role
Furthermore, Stark, a seasoned expert in regulatory matters, has gone beyond mere questions and has put forth the notion that at the very least, Joseph Bankman and Barbara Fried should be named as “relief defendants” from the SEC’s perspective.
This selective approach to enforcing the law has raised substantial questions about the true allegiance of the market regulator. Observers of the industry are beginning to question whether the SEC’s priorities are aligned with the core interests of FTX creditors and users who have been awaiting the return of their funds. The notable absence of any discussions about indicting SBF’s parents has led some experts to perceive them as victims rather than participants in the events at hand.
Balancing Justice and Recovering Misappropriated Funds
While the prevailing sentiment among industry observers is a call for justice to be served in the case of Joseph Bankman and Barbara Fried, the paramount objective remains the recovery of millions of dollars in misappropriated funds that rightfully belong to the exchange. These funds went missing during Sam Bankman-Fried’s tenure as CEO of FTX Exchange.
The lawsuit brought forth by FTX seeks to reclaim all monetary contributions made to entities represented by SBF’s parents. Notably, one of these entities is Stanford University, an esteemed institution where both Joseph Bankman and Barbara Fried hold positions as Law Professors. Stanford University has taken a significant step by pledging to refund the substantial sum of $5.5 million, which it received as a cash gift from the exchange for research conducted during the COVID-19 pandemic.