Sam-Bankman Fried’s parents nearly broke down in court after their son’s verdict was announced.
The FTX founder was convicted on fraud and conspiracy charges, and faces up to 110 years in prison.
Joseph Bankman and Barbara Fried, who have both taught at Stanford Law, are tied up in the FTX scandal.
Sam Bankman-Fried’s parents nearly broke down in Manhattan federal court on Thursday after the FTX founder was found guilty of seven counts of fraud and conspiracy — charges that carry a sentence of up to 110 years in prison.
As the jury announced the verdict, Barbara Fried, Bankman-Fried’s mother, seemed to fight back tears. Joe Bankman, Bankman-Fried’s father, was slumped over with one hand on his wife’s shoulder.
As the courtroom cleared out, Bankman-Fried’s parents stood and embraced. After Fried wiped a tear from her face, the two parents walked out of the courtroom in silence. The response was a far cry from her reported laughter in the courtroom last year.
Their son’s charges come a year after the collapse of FTX, the cryptocurrency exchange he ran.
The FTX founder, along with other executives, funneled customer money from the exchange to his hedge fund, Alameda Research, and their own pockets, purchasing expensive real estate in The Bahamas and making political donations.
Bankman-Fried’s parents, both longtime Stanford law professors, were caught up in the FTX scandal.
In September, FTX Trading filed a lawsuit against Bankman and Fried, accusing them of extracting millions of dollars from FTX and using them for their own personal benefit.
The company alleges that the couple accepted a $10 million cash gift and $16.4 million property from the company, despite knowing that FTX was on the verge of collapse. The FTX lawsuit described its crypto exchange as a “family business.”
The couple’s lawyers have called the allegations “completely false.”
Bankman reportedly helped develop marketing materials and was a key legal advisor to FTX.
Bankman and Fried reside in a multimillion dollar home in the San Francisco Bay Area, where Bankman-Fried was required to stay at while he awaited trial.
“Anyone close to me, including my parents and employees and coworkers, who fought with the company to push forward, they were hurt by this,” Bankman-Fried said last year.”I feel really grateful for the support my parents are still giving me throughout all of this.”
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