Parents Of Sam Bankman-Fried Accused Of Using Son’s Company To Enrich Themselves, Dem Political Org

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Collapsed crypto exchange FTX is suing founder Sam Bankman-Fried’s parents for allegedly enriching themselves and using their influence to fund a Democrat-aligned political action committee, according to a court filing on Monday.

The lawsuit alleges that Bankman-Fried’s parents Alan Joseph Bankman and Barbara Fried participated in misappropriating millions of dollars from FTX. They allegedly took advantage of “their access and influence within the FTX enterprise to enrich themselves,” with Barbara Fried accused of illegally funding her PAC, Mind the Gap (MTG).

Fried co-founded and previously ran MTG as president and chairwoman, according to the filing. Due to worries about the “optics” of Bankman-Fried donating to MTG, she allegedly advised FTX Director of Engineering Nishad Singh to make the contributions instead. (RELATED: Alleged Fraudster Sam Bankman-Fried To Be Sent Back To Parents’ House On $250 Million Bond)

“As a result of her concern about public scrutiny, Fried on multiple occasions suggested, and even encouraged, Bankman-Fried and Singh to falsify disclosure records and misrepresent the source of a particular contribution,” according to the filing.

Fried allegedly sent an email to Bankman-Fried and Singh about a $1 million contribution to MTG, according to the filing.

“I’m assuming that Nishad would be the better person to have his name on it. We’d have a slight preference for that on our end, now that my connection to Sam is publicly known, because we don’t want to create the impression that funding MTG is a family affair, as opposed to a collective effort by many people (including some mystery guy Nishad Singh :)) If that works on your end, I’ll have [an MTG employee] send you instructions,” Fried wrote, according to the filing.

Bankman-Fried and Singh both responded that they were on board with what Fried suggested, according to the filing. The two FTX executives allegedly donated tens of millions of dollars to the PAC and causes it supported.

“At Fried’s explicit request, Bankman-Fried and Singh contributed tens of millions of dollars to MTG or MTG-supported causes,” the lawsuit alleged. “At times, Fried committed Bankman-Fried and Singh to backstop MTG-supported programs to ensure that MTG would meet its funding goals, and repeatedly called upon these guarantees.”

Fried stated that Bankman-Fried should avoid using his name in contribution disclosure forms for his sake and MTG’s, according to the filing.

“(Of course the obvious and truthful answer to why you are giving the money– to defeat state legislators who are committed to subverting the will of the voters— won’t get you very far with the press and won’t get you anywhere with Republicans),” Fried added, according to the filing. “You could get Nishad or Caroline to contribute to the PAC some of the total amount you are willing to give, but that has its own costs and risks.”

Bankman-Fried agreed it would not be best to use his name in contribution disclosures, according to the filing.

It is illegal to allow someone to donate money using another person’s name and it is also illegal to knowingly take money from a person using someone else’s name, according to the filing.

Bankman, Fried, Bankman-Fried’s attorney and FTX did not immediately respond to the Daily Caller News Foundation’s request for comment. Mind the Gap could not be reached for comment.

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