FTX gets court nod to subpoena founder Bankman-Fried, his family members and other insiders
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Sam Bankman-Fried faces fraud charges over the collapse of once-prominent crypto exchange FTX.
PHOTO: REUTERS
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New York – Failed crypto firm FTX received court approval on Wednesday to issue subpoenas to founder Sam Bankman-Fried and members of his family as part of the company’s investigation into “misappropriated and stolen” funds.
FTX, a once-prominent crypto exchange, filed for bankruptcy protection in November
FTX said that it needs more information from former insiders, including its indicted founder, to identify misspending that could be clawed back to repay FTX’s customers.
United States bankruptcy judge John Dorsey, who is overseeing FTX’s Chapter 11 proceedings, approved FTX’s request to issue subpoenas to Bankman-Fried; his parents, Mr Joseph Bankman and Mrs Barbara Fried; his brother, Mr Gabriel Bankman-Fried; former FTX chief technology officer Gary Wang; former Alameda chief executive Caroline Ellison; and former FTX chief operating officer Constance Wang.
FTX said in court papers filed on Wednesday that most of the subpoena targets are cooperating with its investigation. FTX said it is still in discussions with Ellison and that Sam Bankman-Fried “remains non-responsive”.
Ellison and Gary Wang have pleaded guilty to fraud charges for their role in the collapse of FTX and Alameda. Bankman-Fried has pleaded not guilty, and is scheduled to face trial in federal court in Manhattan in October.
The subpoenas focus on questionable spending by FTX insiders. This includes US$16.7 million (S$22 million) spent on Bahamian real estate by Bankman-Fried’s parents and a Washington headquarters building purchased by Guarding Against Pandemics, an advocacy organisation founded by the Bankman-Fried brothers.
FTX is also seeking information about political donations. In addition to donations by Sam Bankman-Fried, his mother founded a political action committee called Mind the Gap, which makes recommendations to a network of political donors. Mind the Gap has previously said that Sam Bankman-Fried did not make any direct contributions to the organisation, but did donate to some of its recommended programmes. BLOOMBERG
