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Key Takeaways
- Sam Bankman-Fried is reportedly paying for his authorized charges with $11.7 million he gave to his father, Joseph Bankman.
- He made the present in 2021 through the use of his lifetime property and present tax exemption.
- The cash initially got here from an Alameda mortgage.
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Sam Bankman-Fried claimed to have solely $100,000 to his identify within the speedy aftermath of the FTX collapse. So how is he bankrolling his authorized protection?
A $11.7 Million Reward
As Sam Bankman-Fried’s authorized difficulties hold growing, observers have been questioning how he has been capable of afford his authorized counsel.
In line with a brand new report from Forbes, former FTX CEO Sam Bankman-Fried has been paying for his authorized payments with funds initially belonging to Alameda Analysis.
Bankman-Fried reportedly borrowed over $10 million from Alameda in 2021 and organized to present the cash to his father, Joseph Bankman, through the use of his lifetime property and present tax exemption. In line with Forbes, the tax-free present—believed to have been value $11.7 million—has been used to pay for Bankman-Fried’s protection. “I’ll be spending considerably all of my sources on Sam’s protection,” Bankman beforehand acknowledged. Bankman-Fried’s mother and father have already leveraged their multi-million greenback Palo Alto property to assist safe the disgraced crypto founder’s $250 million bail bundle.
Bankman-Fried has retained the providers of Mark Cohen and Christian Everdell of Cohen & Gresser, who beforehand represented Ghislaine Maxwell throughout her sex-trafficking trial. His authorized payments are more likely to attain a number of hundreds of thousands of {dollars}.
The FTX co-founder had beforehand tried to take management of his 56 million Robinhood shares (at present value roughly $507 million) and use them to pay for his payments. Nonetheless, the Division of Justice seized the shares as they have been suspected of getting been bought with FTX buyer funds. It’s probably that Bankman-Fried’s lifetime present to his father was additionally made utilizing consumer belongings.
Bankman-Fried has additional requested to make use of his FTX insurance coverage coverage to cowl his authorized payments. The brand new administration at FTX has refused his request.
Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto belongings.