Parents of Former FTX CEO Seek Dismissal of Lawsuit

Joseph Bankman and Barbara Fried argue they held no executive role at the exchange, denying any breach of fiduciary duty.

Joseph Bankman and Barbara Fried, parents of former FTX CEO Sam Bankman-Fried, have asked a court to dismiss a lawsuit by the bankrupt cryptocurrency exchange FTX seeking to recover funds it alleges were fraudulently transferred.
FTX sued Bankman and Fried in September 2023, aiming to recover 'millions of dollars in fraudulently transferred and misappropriated funds' allegedly taken by the couple.
Bankman and Fried's lawyers argue that neither defendant ever held an executive role at the exchange, and therefore no breach of fiduciary duty took place.
The lawsuit also seeks to recover damages attributed to breaches of fiduciary duties and other alleged misconduct.
Sam Bankman-Fried was found guilty on all seven charges of defrauding customers and the United States in November 2023. His sentencing is expected in March.