Are Sam Bankman Fried’s Parents Victim Or Culprit?

With the trial of Sam Bankman-Fried (SBF) fast approaching, a number of tough questions are flying around including seeking to know whether his parents, Joseph Bankman and Barbara Fried are either victims or culprits in the highly watched case.

SEC Veteran Questions DOJ’s Stance

In his characteristic manner, John Reed Stark, a former Executive of the United States Securities and Exchange Commission (SEC) has questioned the commitment of the Commission as well as that of the Department of Justice (DOJ) in Prosecuting SBF’s parents who the FTX Derivatives Exchange had already sued.

Drawing on his experiences as an attorney with the SEC for over 20 years, Stark noted that he has “cannot comprehend why the U.S. Department of Justice and the U.S. Securities and Exchange Commission have not added SBF’s parents as defendants.”

SBF’s Mom and Dad: Criminal Beneficiaries, Profiteers, Conspirators and Enablers

I served for almost 20 years as an attorney in the SEC Division of Enforcement (including 11 years as Chief of the SEC’s Office of Internet Enforcement) and led dozens of SEC prosecutions with… pic.twitter.com/pElbR2wUeX

— John Reed Stark (@JohnReedStark) September 23, 2023

Expanding his claims, the regulatory expert said as far as the SEC is concerned, at least Joseph Bankman and Barbara Fried ‘should at least be named as “relief defendants.”’

The selective enforcement actions have made the industry question what the loyalty of the market regulator really is and whether or not it aligns with the core interests of FTX creditors and users whose funds are yet to be refunded. With no regulator talking about indicting SBF’s parents, experts believe they are now being treated as victims, rather than the culprits that they are.

Going Beyond Justice With Sam Bankman-Fried’s Parents

Although, the clamor that most industry observers are nursing is that justice should be made to prevail in the case of Bankman and Fried, what is really needed is the recovery of the millions of dollars in funds belonging to the exchange that was misappropriated while SBF was still at the helm of affairs as FTX Exchange’s CEO.

The FTX lawsuit filed against the duo is already seeking the refund of all cash gifts made to entities represented by SBF’s parents. One of these entities is Stanford University where both Bankman and Fried have positions as Law Professors. The prestigious institution has revealed its plans to refund the sum of $5.5 million it received as a cash gift from the exchange for research during the COVID-19 period.

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