Who are Sam Bankman-Fried’s parents? Guilty FTX founder faces 115 years in prison in historic fraud case
NEW YORK CITY, NEW YORK: Disgraced FTX founder Sam Bankman-Fried was found guilty of all seven criminal counts against him.
He now faces a maximum sentence of 115 years in prison, CNBC reports.
Bankman-Fried, a 31-year-old Massachusetts Institute of Technology graduate and the son of two Stanford law professors, Joseph Bankman and Barbara Fried, was found guilty of conspiracy to commit money laundering, conspiracy to commit securities fraud, conspiracy to commit commodities fraud against FTX investors, and conspiracy to commit wire fraud against FTX customers and Alameda Research lenders. Bankman-Fried’s parents were visibly nervous and broke down after the guilty verdict was read out in the courtroom.
The prosecution presented evidence that Bankman-Fried's crypto trading firm Alameda Research received deposits on behalf of FTX customers from the early days of the exchange when traditional banks were unwilling to let it open an account.
In an attempt to get their sentences reduced, three of Bankman-Fried's former close friends and coworkers—including his ex-girlfriend Caroline Ellison—pleaded guilty and consented to testify against him.
Sam-Bankman Fried's lavish real estate deals
Official property records reveal that over the past couple of years, ousted founder Sam Bankman-Fried's failed FTX lavishly spent on at least 19 properties in the Bahamas, totaling close to $121 million.
As per a court filing on Monday, November 21, the company, which has applied for bankruptcy court protection in the US, owes investors more than $3 billion, but as of November 20, it seems to have an overall cash balance of $1.24 billion.
The majority of the real estate buying frenzy was opulent seaside mansions, which has led to doubts concerning how and why they were purchased.
Among them are the $72 million spent on flats in a five-star resort in the Bahamas, the $30 million penthouse in the same building, the $16.4 million holiday property, and the three apartments, each costing between $950,000 and $2 million, Daily Mail reported.
The largest sum, a staggering $72 million, was spent on FTX employees' residences at a posh resort dubbed "the ultimate in luxury waterfront living in the Caribbean" by listing agents, as well as a $30 million penthouse for former CEO Bankman-Fried in the same building.
Tiger Woods regularly hosts golf tournaments at the upscale Albany resort in the Bahamas, which has a view of the island nation's beautiful beaches.
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FTX also acquired a $16.4 million vacation home in the exclusive gated neighborhood of Old Fort Bay for Bankman-Fried's law professor parents.
Joseph Bankman and Barbara Fried are listed as signatories on the documents for the $16.4 million house with beach access in the exclusive Old Fort Bay.
One of the paperwork dated June 15 stated that the property was intended to be used as a "vacation home."
A representative for the professors only revealed that Bankman and Fried had been attempting to return the property to FTX when Reuters questioned them about the couple's decision to purchase a vacation home in the Bahamas and how it was paid for.
The rep said, "Since before the bankruptcy proceedings, Bankman and Fried have been seeking to return the deed to the company and are awaiting further instructions."
The San Fransisco Standard reported that Bankman-Fried, who previously had almost all control over the company, was fired when FTX declared bankruptcy on November 11.
Who are Sam Bankman-Fried’s parents?
The parents of Bankman-Fried are renowned Stanford Law School professors.
Barbara Fried is a distinguished professor who specializes in moral philosophy and the law, while Joseph Bankman is a recognized expert in tax law.
Ten years ago, Bankman acquired his clinical psychologist license and began advocating CBT while co-hosting the WellnessCast podcast for law students.
Former students remarked that both showed greater concern for their well-being than other professors.
One student recalled that Fried welcomed them to her house and spent time with them outside of class discussing how to handle the pressure of law school.
A pupil of Bankman's described him as a "big softie." One of the former students told SF Standard, "Joe Bankman is sensitive and extremely soft-spoken. Both of [Sam’s] parents were very quintessentially open-minded professor types, more than Socratic types. They seem like really supportive people."