Parents of SBF’s Stanford law professor expect his legal bill to wipe them out financially

Parents of Stanford Law Professor FTX Founder Sam Bankman-Fried faces the prospect of legal bills piling up in his wake Arrested in Bahamas For US Federal Claims.

Joseph Bankman and Barbara Freed have remained by their 30-year-old son’s side in the Bahamas since the cryptocurrency exchange’s bankruptcy last month, but his arrest on Monday has added a new element of stress to the close-knit family. added.

Bankman and Freed told friends that their son’s legal fees would likely wipe them out financially. wall street journal report.

“I hope this gives us some wisdom,” Bankman said of the FTX story, the WSJ reported, citing people close to him. It will be too difficult.”

Bankman-Fried was born on the campus of Stanford University in California to two respected law professors.

Parents Joseph Bankman (left) and Barbara Freed (right) have been by their 30-year-old son’s side in the Bahamas since his cryptocurrency exchange went bankrupt last month.

Bankman and Freed, law professors at Stanford University, told friends that their son’s legal bills would likely wipe them out financially.

Bankman and Freed clearly support their son emotionally, but after they were spotted in his penthouse shortly after FTX went bankrupt on November 11, Bankman’s direct role in the company was reduced. It may have been larger than previously reported.

For 11 months, Bankman was a paid employee of FTX, mostly devoted to philanthropic work, a family spokesperson told the WSJ, adding that Freed was not involved with the company.

In an August podcast, Bankman said he became increasingly involved in FTX’s philanthropic efforts, including efforts to help unbanked Americans get bank accounts and cryptocurrency wallets.

He said he was responding to his son’s request, saying, “Any parent would love to hear that.”

“I mean, the company didn’t have a lawyer,” Bankman said on the podcast, noting that he helped recruit outside lawyers for his son’s trading firm, Alameda Research. I think it was pretty clear.”

Bankman is Ralph M. Parsons Professor of Law and Business at Stanford Law School.

last week, San Francisco Standard reported that he canceled a course on taxation next semester in hopes of helping his son solve his legal problems.

Freed and Bankman rushed to be by his son’s penthouse balcony in the Bahamas as his company filed for bankruptcy last month.

Friends say the parents provided their sons with informal legal advice, but they primarily specialize in tax policy and corporate law, and have been involved in Bankman-Fried’s ongoing federal indictment. You may lack the necessary criminal defense experience.

Bankman-Fried recently said at the New York Times Dealbook Summit:

Former Bankman students told the San Francisco Standard that the professor was a “soft man” and cared deeply about his students.

“I intend to dedicate virtually all of my resources to Sam’s defense,” he wrote to the director of the nonprofit, which is no longer funded through the FTX Foundation.

Bankman-Fried’s mother, Barbara Fried, is a William W. and Gertrude H. Saunders law professor and co-founder of Mind the Gap. This committee is the “secret Silicon Valley” political action committee that raised millions of dollars for Democratic candidates.

Be warned, Gap operates in a cone of secrecy and often encourages donors to keep their information safe. There is no website or social media presence for him, and Reeder does not feature her bio on sites such as LinkedIn. vox.

Property documents reported by Reuters show Bankman and Freed own $16 million house Beach access at Old Fort Bayan exclusive enclave of Nassau.

$16 million: Entrance to Old Fort Bay, an exclusive gated community where records show Bankman-Fried’s parents owned a “villa”

According to one of the documents dated June 15, the property is intended for use as a “vacation home”.

Old Fort Bay is an exclusive gated community on the site of a British colonial fort built in the 1700s to protect against pirates roaming the Caribbean.

The original fort has been restored in the resort community’s private clubhouse, and the antique cannon still sits on the lawn.

Through a publicist, the couple said they were trying to return ownership of the house to FTX even before filing for bankruptcy.

“Joe and Barbara never thought or believed there was any interest or financial ownership in the house,” their publicist told the WSJ. They have asked FTX attorneys and outside counsel to take steps to clarify beneficial ownership of the company’s homes.”

Police in FTX’s home Bahamas said Bankman-Fried was arrested Monday night at the request of US federal prosecutors in his posh gated community called Albany in the capital Nassau.

U.S. federal prosecutors on Tuesday allege Bankman-Fried committed fraud and violated campaign finance laws, and the founder and former CEO of FTX also received additional charges from U.S. regulators.

A police vehicle carrying Sam Bankman-Fried arrives at a magistrate’s court in Nassau, Bahamas, on Tuesday.

Bankman-Fried, 30, has arrived in a heavily guarded courtroom in the Bahamas for the first time since the collapse of the cryptocurrency exchange. He may be extradited to the United States.

“Bankman-Fried is reviewing the charges with his legal team and considering all legal options,” his attorney, Mark S. Cohen, said in a statement.

In the indictment, prosecutors allege Bankman-Fried diverted FTX customer deposits to pay costs and liabilities, and made investments on behalf of his cryptocurrency hedge fund, Alameda Research LLC, to help FTX. said it was involved in a scheme to defraud its customers.

He also tried to deceive lenders by providing Alameda with false and misleading information about the status of the hedge fund, and to disguise money obtained by committing wire fraud.

Both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) allege Bankman-Fried committed fraud in a lawsuit filed Tuesday.

“He spent lavishly on office space and condos in the Bahamas, pouring billions of dollars of client money into speculative venture investments, but Bankman-Fried’s Trump house began to fall apart.