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FTX, a prominent cryptocurrency exchange, is facing a multi-million dollar lawsuit involving the parents of its founder, Sam “SBF” Bankman-Fried. Joseph Bankman and Barbara Fried, both esteemed professors at Stanford Law School, are accused of misusing funds from the FTX platform. The lawsuit, filed by Sullivan & Cromwell on behalf of FTX debtors, alleges that the parents took advantage of their influential positions to drain money from the company, leaving creditors in a difficult situation. This contradicts SBF’s previous statements about his parents’ involvement in FTX’s operations. It is worth noting that in 2018, Bankman referred to Alameda, a company linked to FTX, as a “kin-run enterprise.” The lawsuit suggests that SBF’s father had significant influence in FTX’s decision-making, while his mother played a role in directing funds to a political committee she helped establish. The legal documents also mention extravagant perks enjoyed by the parents, including a $10 million cash windfall and a luxurious estate in the Bahamas. The lawsuit argues that the parents either turned a blind eye to or were unaware of their son’s alleged questionable activities. The aggrieved debtors are seeking justice and hoping to recover assets for the creditors. In response, the parents’ legal team dismisses the lawsuit as a tactic to overshadow their child’s upcoming trial, vehemently denying the allegations. Following the FTX bankruptcy in November 2022, both parents reportedly faced professional setbacks at Stanford Law School, and rumors circulated about their financial troubles due to their son’s legal issues. The FTX saga took a darker turn when SBF was arrested and charged with fraud and money laundering. The legal proceedings will continue on October 3rd, when SBF will face seven serious charges in court.