Sam Bankman-Fried's Father in FTX Token Meetings on Marketing and Taxation

Simar Marwaha
Simar Marwaha Published on September 15, 2023 08:19 PM

Meetings regarding FTX token marketing and tax matters had the presence of Sam Bankman-Fried's father.

Sam Bankman-Fried's Father in FTX
Source: Medium

FTX founder Sam Bankman-Fried's father, Joseph Bankman, was revealed to have been a participant in meetings focused on the creation of marketing materials for FTT, the cryptocurrency central to the exchange's downfall last November, as per Bloomberg reports.

Joseph Bankman, who holds a position as a professor at Stanford Law School, was additionally engaged in discussions addressing tax-related matters during these meetings.

This information was gleaned from invoices provided by the law firm Fenwick & West, which had been enlisted by Alameda Research, the hedge fund affiliated with FTX. The revelation underscores Joseph Bankman's involvement in crucial aspects of FTX's operations and decision-making processes. 

Sam Bankman-Fried's Father Partook in Discussions About FTX Token Marketing and Taxation Matters

This insight was obtained from invoices furnished by Fenwick & West, the law firm engaged by Alameda Research, the hedge fund linked to FTX. This disclosure emphasizes Joseph Bankman's participation in critical facets of FTX's operations and strategic decision-making processes.

It also illuminates the intricate interconnections among FTX, its affiliated entities, and key stakeholders. The involvement of Sam Bankman-Fried's father in these strategic deliberations underscores the intricate dynamics within the FTX ecosystem and its wider network of collaborators.

These revelations introduce a captivating dimension to our comprehension of FTX's internal mechanisms and the roles played by influential figures in its trajectory.

This development adds an intriguing twist, as last month, the legal counsel for FTX founder Sam Bankman-Fried had indicated a potential reliance on an advice-of-counsel defence strategy in his upcoming trial.

This defence hinges on the argument that Bankman-Fried lacked criminal intent because he acted based on legal guidance provided by attorneys overseeing FTX.

Although the court filing outlining this strategy doesn't specifically mention Bankman, it's noteworthy that Bankman-Fried's father, a tax law specialist, reportedly offered extensive advice to his son.

This legal support extended back to the time before FTX was even launched, with Bankman-Fried's father assisting with legal matters during his leadership of Alameda, as reported in Thursday's account.

Sam Bankman-Fried, along with FTX insiders, has been accused of embezzling billions of dollars in customer funds, in what is purportedly one of the largest frauds in American history. Bankman-Fried is facing a range of charges, including fraud and money laundering, to which he has entered a plea of not guilty.

An individual familiar with FTX's operations has disclosed that Bankman played a pivotal role in the exchange's decision to relocate its headquarters from Hong Kong to the Bahamas.

Among the funds allegedly mishandled is a $10 million gift that was the subject of a lawsuit filed by FTX's current management in July. The lawsuit asserts that Bankman-Fried's father utilized these funds to support his son's legal defence.

While Bankman-Fried's father did not hold a formal position within the company, he made an appearance as a U.S. founding father in an FTX commercial that aired during the 2022 Super Bowl. In the advertisement, Bankman-Fried's father countered comedian Larry David's criticism of the U.S. Constitution.


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