Sam Bankman-Fried is facing over a dozen criminal charges and recent reports say that his legal defense is being paid for by a gift he transferred to his father using money from Alameda Research. Bankman-Fried reportedly sent funds to father Joseph Bankman using a lifetime estate and gift tax exemption. He sent this tax-free gift reportedly from a loan he obtained from FTX’s trading firm Alameda Research.
Forbes reported that two sources, who are familiar with the operations at the companies, said that Bankman-Fried contributed the maximum amount a person can give in their lifetime to his father in his lifetime.
According to the outlet the amount might have been $11.7 million in 2021. The amount was given after Sam Bankman-Fried received at least 10 million from Alameda. It also reported that this money, gifted to Joseph Bankman, is being used for Sam Bankman-Fried’s legal defense against the criminal charges that have been levied on him, and he is expected to face trial, in October.
FTX debtors have also claimed that Bankman-Fried received $2.2 billion in company loans that were improper. In March, they alleged that customers’ deposits amounting to $8.9 billion have not been accounted for and are missing.
Sam Bankman-Fried declined to comment on the matter, while FTX’s lawyers did not respond when asked for comment.
In February, his parents Joseph Bankman and Barbara Fried were subpoenaed. In the subpoenas, FTX attorneys sought personal financial statements and records of assets, if any, that they might have received through transfers from FTX companies or from their employees.
Bankman-Fried’s parents have supported their son and used their Palo Alto property to pay for his bail bond. Joseph Bankman had reportedly said that he would be spending his resources on his son’s defense. Sam Bankman-Fried is being represented by several lawyers and firms who have represented several defendants in high-profile cases.
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Federal prosecutors allege that Sam Bankman-Fried paid $40 million in cryptocurrency as bribe to Chinese officials.
