FTX Founder Bankman-Fried Might Be Paying His Defense with Company Funds

FTX’s caretaker leadership have filed a lawsuit in bankruptcy court against Sam Bankman-Fried, Gary Wang, Caroline Ellison, and Nishad Singh, alleging illegal loan from FTX to Bankman-Fried’s father to fund Sam Bankman-Fried’s criminal defense.

The complaint details Bankman-Fried transferring $10 million of company’s funds to a personal account on the platform, followed by his father Joseph transferring nearly $7 million to his personal accounts at Morgan Stanley and TD Ameritrade.

Joseph also allegedly lost over $1 million in FTX US account funds on failed cryptocurrency trades.

The complaint seeks to clawback hundreds of millions of dollars from the defendants.