FTX lawyers to drag founder Sam Bankman-Fried's family to force answer and provide documents
- FTX attorneys asked for evidence related to their wealth and other money received from the bankrupt exchange.
- Sam Bankman-Fried's mother and brother are reportedly not cooperating with the ongoing investigation into FTX.
- FTT price took a break to cool down following the 185% rally to trade at $1.916.
FTX saga seems to be getting personal as the bankrupt exchange's lawyers are now targeting not the founder but his family members. Sam Bankman-Fried, despite being cooperative and helpful as much as even going to jail, has failed to turn up all the information about the misappropriated funds, resulting in the current development.
FTX founder family under scope
FTX lawyers, in a legal filing on Wednesday, stated that Sam Bankman-Fried, the former CEO of the bankrupt exchange, might have moved his funds around, bringing his family into the equation. Apparently, family members of the disgraced executive are also involved in the investigation.
However, the lack of cooperation from these entities' has led the cryptocurrency exchange's lawyers to file a probe to look into Bankman-Fried's parents, who are acting as "advisors". In the case of the bankrupt son's exchange, his family would also be subpoenaed to figure out what happened to the misappropriated funds. The filing further added,
"The Debtors and their advisors have been working tirelessly and nonstop over the last 70 plus days … to implement controls, recover and protect estate assets. Key questions remain, however, concerning numerous aspects of the Debtors' finances and transactions."
The lawyers stated that if need be, Sam Bankman Fried's family members should be forced to answer the questions and provide any and every financial record.
According to reports, Bankman-Fried's mother offered tax advice to FTX employees as well as help with who to recruit. His father, too, has been a part of advising their son. However, the latter is willing to cooperate and find a consensual outcome.
FTT price rise slows down
FTT price, after registering a 185.22% rise in the last four weeks, took a break in the last few days as the broader market's bullish rally slowed down as well. Trading at the price of $1.940 at the time of writing, the altcoin declined from $2.4 by nearly 22%.
FTT/USD 1-day chart
FTX's bankruptcy proceedings, on the other hand, continued as January came close to an end with the federal prosecutors seizing $700 million worth of assets earlier this month. The assets tied to Sam Bankman-Fried also included the 55 million Robinhood shares, which the likes of BlockFi attempted to claim ownership of.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
