According to court documents in the FTX bankruptcy case, lawyers for the company are seeking to subpoena FTX co-founder Sam Bankman Freed, his brother Gabriel Bankman Freed and their parents Joseph Bankman and Barbara They are seeking subpoenas for Fried. In addition, the attorneys intend to question several of Bankman-Fried’s top aides, including FTX co-founder Gary Wang, former Alameda Research CEO Caroline Ellison, former Chief Operating Officer Constance Wang, and the exchange’s former technical director Nishad Singh. The company intends to interrogate them.
FTX lawyers will push for subpoenas of co-founders, associates, parents, and siblings
FTX Trading Ltd. attorneys and the official creditors’ committee in thebankruptcy caseFTX Trading Ltd. attorneys and the creditors’ committee in the bankruptcy caseintend to question Sam Bankman-Fried (SBF), his parents, his brother, and several former CEO executives The motion was filed for the purpose of The attorneys argue that certain insiders associated with Bankman-Fried’s dealings may provide much-needed insight into financial matters.
“Certain insiders are currently cooperating with the debtor to provide critical information. Others, however, are not. Therefore, the authority to issue subpoenas to those with missing information is essential to the recovery efforts of the debtor and the Commission,” the joint motion details.
FTX’s current CEO, John J. Ray III, told Congress that Joseph Bankman and “the family certainly” received payments from FTX. Although Bankman and Barbara Freed have not been charged with any wrongdoing, recent court filings allege that they were both associated with the company. According to the filing, Freed’s political action committee (PAC), Mind the Gap, received funds from FTX. Barbara Freed “completely ignored the request,” the joint statement discloses. Bankman allegedly provided tax advice to the staff and was involved in tying FTX to the company’s first litigation firm, the court filing explains.
“Insiders are best positioned to assist in the case,” FTX attorneys further claim in the latest filing. In this document, the attorney states that he would like to question SBF’s brother, Gabriel Bankman-Fried. The application describes a nonprofit organization called Guarding Against Pandemics, which is run by Bankman-Fried’s brother. Referring to political lobbying activities allegedly conducted at a “multi-million dollar property” near the U.S. Capitol, it states, “The debtor believes the property was purchased using misappropriated client funds.” In addition to Bankman-Fried’s brother and parents, Constance Wang, Caroline Ellison, Gary Wang, and Nishad Singh are listed on the bill.
Delaware Bankruptcy Court Judge John Dorsey must approve the request to subpoena SBF and members of its entourage. Bankman-Fried has been indictedby a federal grand jury in Manhattanon charges of “conspiracy to commit wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and to commit campaign finance violations.” SBF is currently awaiting trial on these charges, scheduled for October 3, 2023.
“The Debtor has not received any meaningful engagement or any response from Mr. Singh or Gabriel Bankman Freed,” the FTX attorney added in the filing.
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