--- title: "Sam Bankman-Fried’s Parents May Have Been More Involved in FTX Than We Thought" description: "According to new reporting, Joseph Bankman and Barbara Fried played much bigger roles in FTX's business proceedings than they've let on." date: "2023-09-16" modified: "2023-09-16" authors: - name: "Maggie Harrison Dupré" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/mharrison" url: "https://futurism.com/the-byte/sam-bankman-frieds-parents-involved-ftx" categories: - "Blockchain" - "Future Society" tags: - "crypto" - "ftx" - "sam bankman-fried" - "the digest" --- # Sam Bankman-Fried’s Parents May Have Been More Involved in FTX Than We Thought ![According to new reporting, Joseph Bankman and Barbara Fried played much bigger roles in FTX's business proceedings than they've let on.]() *NEW YORK, NEW YORK - AUGUST 11: Joseph Bankman, father of former FTX CEO Sam Bankman-Fried, leaves after a bail hearing for his son at Manhattan Federal Court on August 11, 2023 in New York City. A federal judge revoked bail for Bankman-Fried, who has pleaded not guilty to multiple conspiracy and fraud charges, after he was accused witness tampering by prosecutors after the New York Times published a story featuring personal documents of Caroline Ellison, former Alameda Research CEO. Judge Kaplan will also hear arguments on the gag order placed on Bankman-Fried that was placed as part of his bail agreement for the alleged witness tampering. (Photo by Michael M. Santiago/Getty Images) \Image: Michael M. Santiago/Getty Images/Futurism\* ## Helicopter Parents In the months since [FTX's spectacular implosion]() last fall, Joseph Bankman and Barbara Fried, Stanford law professors and parents of the now-defunct crypto exchange's disgraced — [and currently incarcerated]() — ex-CEO Sam Bankman-Fried, have maintained that they had minimal involvement with the crypto company. As [the company line generally went:]() Fried never worked for FTX, and though Bankman did work for the company briefly, his stint was short-lived and mostly dealt with philanthropy. But that characterization of Bankman and Fried's roles with the firm may be pretty far from the truth. According [to new reporting from *Bloomberg*](), former employees and partners of the exchange paint a very different picture of the couple's involvement, while legal filings show their influence and connections were instrumental to the company's meteoric success. Perhaps most damningly, according to *Bloomberg*, those court documents also show that Bankman and Fried profited greatly from FTX, gleaning a cool $26 million in cash and real estate investments in 2022 alone. That's a lot of money, especially for two people who claim to have been generally hands-off from the venture. ## Father Knows Best Per the report, sources who worked at or with the firm viewed Bankman and Fried as regular office fixtures. Bankman-Fried wasn't exactly a people person; his dad, though, often reportedly functioned as Bankman-Fried's go-between for staffers and business partners. Fried reportedly made more appearances at dinners, but often played a similar role as a "mediator" between her son and his employees, according to *Bloomberg*. Sources also told *Bloomberg* that Bankman played an "instrumental" role in the firm's choice to relocate to the Bahamas from Hong Kong, and that Bankman-Fried often consulted his father before making any major decisions. And then, of course, there's the money. Per the report, Bankman and Fried visited FTX's Bahamas headquarters quite frequently, staying in a $16 million beachfront condo when they did. And though they've continued to argue that the property was "temporary housing" for Bankman to work from when in town, public records for the house make no mention of FTX. It's in Bankman and Fried's name, and it's listed as their "vacation home." Elsewhere, court documents say that Bankman-Fried used FTX funds to give his parents a $10 million cash gift. This was never given back, with Bankman and Fried arguing that they would need it to [pay their son's legal bills](). Still, Bankman and Fried's most quintessential role in FTX's rise may have simply been their reputations. Their legitimacy helped bolster that of their Palo Alto-raised son, whose elite background helped to sell the unkempt wunderkind persona that the founder so famously once projected. Lessons learned. **More on FTX developments:**[ *Sam Bankman-fried Complains That the Wi-Fi Is Bad in Jail*]() ## Author At Futurism, I've reported extensively on the rise of AI as a cultural and business force shaping the media industry, and more broadly how those dynamics are changing how we all consume and share information and relate to one another. I'm also fascinated by public health policy and ethics, the role of emerging tech in politics and governance — and the powerful people and forces at those intersections — climate change, and the environment. My investigation on Sports Illustrated's use of AI-generated authors with fictional biographies won a 2024 Mirror Award for "Best Story on Media Coverage of Artificial Intelligence in Journalism and the Media" from Syracuse University's SI Newhouse School, I contributed to Niemen Lab's 2025 Predictions for Journalism series, and I've discussed my work for Futurism during appearances on NPR, CNN, the BBC, the CBC, and more. I grew up in rural Pennsylvania and attended the University of Massachusetts Amherst, where I played Division I field hockey for the Minutewomen as a midfielder. Since then, I've lived in New Orleans, Louisiana and Manhattan, New York. I spend my free time running, reading, perusing archival fashion, and searching for the world’s best negroni. I also have a debonair tuxedo cat, Westley, who's named after "The Princess Bride." ### Author social links [Bluesky]()