Crypto: Will Sam Bankman-Fried's Parents Soon Be Arrested?

Recent revelations by the Wall Street Journal have shed light on troubling elements concerning the family of Sam Bankman-Fried, the former CEO of the crypto exchange FTX. Unpublished emails show that his parents, Alan Joseph Bankman and Barbara Helen Fried, as well as his brother Gabriel, have played significant roles in the financial and political management of the company. This new information could further complicate the legal matters surrounding the spectacular collapse of FTX.

SBF’s parents at the heart of the financial turmoil

The emails reveal that Alan Joseph Bankman, Sam’s father, was directly involved in the financial affairs of the crypto exchange FTX. In September 2022, he communicated with tax attorneys from Fenwick & West to discuss the tens of millions of dollars that Ryan Salame, then an executive at FTX, had withdrawn from Alameda Research.

Alan Bankman proposed to qualify these transactions as loans, a suggestion that could directly tie him to the financial manipulations of the crypto company. Although his spokesperson claims he was unaware of campaign finance law violations, a former chairman of the Federal Election Commission stated that the emails provide strong evidence of his knowledge of these transactions.

Barbara Helen Fried, Sam’s mother, is also involved in the saga. In August 2021, she asked her son for $92,000 to fund two projects as part of a new research initiative. These funds came directly from FTX, raising questions about the use of the crypto company’s resources for personal purposes. Barbara’s lawyers argue that her advice was appropriate.

🔔 #SBF's Family Tied to $100M FTX Scandal, Legal Troubles Loom !

Sam Bankman-Fried, founder of FTX, is involved in a $100 million scandal over misuse of company assets for political donations. The Wall Street Journal revealed that his family managed these funds, aiming to… pic.twitter.com/ASHYiUVmOh

— DigitalNomad. (@DigitalNomad419) July 5, 2024

The influence of SBF’s brother in the saga of the crypto exchange FTX

Gabriel Bankman-Fried, Sam’s younger brother, was a key player in FTX’s political financing network. The emails show that he directed contributions to Democratic politicians using funds from Sam’s personal fortune or directly from the crypto exchange FTX. Ryan Salame, who was sentenced to 90 months in prison for conspiring to make illegal political contributions, played a major role in these transfers. Gabriel also requested a $5 million contribution for Guarding Against Pandemics, an organization he founded.

Gabriel’s implications do not stop there. He advised Nishad Singh, the former director of engineering at the crypto exchange FTX, to make public donations in order to benefit from tax advantages. Singh, who was also involved in illegal donations, claimed that his role was often limited to “clicking a button” to approve the transactions.

The active roles played by Alan Joseph Bankman, Barbara Helen Fried, and Gabriel Bankman-Fried in the FTX affair could have serious legal consequences. This information adds additional pressure on ongoing investigations and could influence upcoming legal proceedings. Sam Bankman-Fried’s family now finds itself at the center of one of the most complex and controversial cases in crypto history.