Sam Bankman Fred’s parents nearly collapsed in the courtroom after the verdict was announced.
The FTX founder was convicted of fraud and conspiracy and faces up to 110 years in prison.
Joseph Bankman and Barbara Freed, both of whom teach at Stanford Law School, were implicated in the FTX scandal.
Sam Bankman Fried’s parents nearly collapsed in Manhattan federal court on Thursday after the FTX founder was found guilty of seven counts of fraud and conspiracy. These charges could carry a penalty of up to 110 years in prison.
Sam Bankman Fried: This is how his parents reacted to the ruling
As the jury announced the verdict, Barbara Freed, Bankman-Freed’s mother, appeared to be holding back tears. Joe Bankman, Bankman-Fried’s father, fell to the ground with his hand on his wife’s shoulder.
As the courtroom emptied, Bankman-Fred’s parents stood and embraced each other. After Fried wiped a tear from his face, the parents left the courtroom in silence. The reaction was a far cry from the laughter she had experienced last year In the courtroom It should appear.
Her son’s charges come a year after the collapse of FTX, the cryptocurrency exchange he ran. The FTX founder and other executives diverted clients’ money from the stock exchange, into his Alameda Research hedge fund, and into their own pockets by buying expensive real estate in the Bahamas and making political donations.
Barbara Fried and Joe Bankman are also involved in the FTX scandal
Bankman-Fried’s parents, both longtime Stanford law professors, were also involved in the FTX scandal. In September, FTX Trading filed a lawsuit against Bankman and Fried, accusing them of embezzling millions of dollars from FTX and using it for their own personal gain.
The company claims the couple accepted a gift of $10 million in cash and $16.4 million (15.2 million euros) in real estate from the company despite knowing that FTX was on the verge of collapse. FTX’s lawsuit describes the cryptocurrency exchange as a “family business.” . The couple’s lawyers denied these accusations, describing them as “completely false.”
Bankman reportedly helped develop marketing materials and was a key legal advisor to FTX.
Bankman and Fried live in a multi-million dollar home in the San Francisco Bay Area, where Bankman-Fried was forced to live while awaiting trial. “Everyone close to me, including my parents, employees and colleagues who fought with the company to move forward, was hurt by this thing,” Bankman-Fried said last year.
“Typical entrepreneur. Lifelong beer expert. Hipster-friendly internet buff. Analyst. Social media enthusiast.”