As the FTX investigation intensifies, Sam Bankman-Fried’s father becomes a lawyer


Disgraced FTX CEO Sam Bankman-Fried’s father has represented himself as officials investigate his ties to the cryptocurrency firm.

Stanford University law professor Joseph Bankman has hired Sean Hecker of Kaplan Hecker & Fink LLP to represent him, Reuters reports.

Hecker is described on the firm’s website as “an experienced trial attorney whose practice focuses on white-collar criminal defense, government and internal investigations, complex civil litigation and regulatory compliance.”

Bankman has not been charged with any crime, but FTX’s current CEO, John Ray, recently confirmed that the company is investigating the “legal advice” the father gave to his son, as well as the cash payments.

Stanford University law professor Joseph Bankman has reportedly hired Sean Hecker of Kaplan Hecker & Fink LLP to represent him.

Bankman reportedly used his legal experience and connections to provide legal advice to his son, Sam Bankman-Fried

Bankman reportedly used his legal experience and connections to provide legal advice to his son, Sam Bankman-Fried

Ray told lawmakers last month that his team was “investigating” the role Bankman and his wife, Barbara Fried, a Stanford law professor, played in the company’s downfall.

Reports have since emerged that Bankman used his connections in the field to give his son ‘legal advice’ on how to run the FTX.

Last month, Ray said the company was investigating the size of his role.

“I don’t know if he actually had ’employee’ status, but he certainly received payments, the family received payments,” Ray said in December.

Bankman, an expert in tax law, also regularly attended meetings on Capitol Hill with his son as the company rose to prominence.

The father and Stanford professor is said to play a major role in the company’s philanthropic efforts.

Bankman-Fried's mother, Barbara Fried, is also a law professor at Stanford

Bankman-Fried’s mother, Barbara Fried, is also a law professor at Stanford

Officials at the company said Fried was not on the company’s payroll. However, he was known to contribute to Democratic organizations led by his son.

DailyMail.com reached out to Kaplan Hecker and Fink, but officials could not be reached for comment at the time of publication.

Bankmen-Fried is accused of orchestrating an $8 billion scheme to defraud investors.

Arrested from his home base in the Bahamas last month and extradited to the United States, the former cryptocurrency mogul is under house arrest in his parents’ $4 million Palo Alto, California home.

The parents mortgaged their home as part of his $250 million bond release.

Sam Bankman-Fried's parents foreclosed on their home as part of a $250 million bond release.

Sam Bankman-Fried’s parents foreclosed on their home as part of a $250 million bond release.

While awaiting trial, Bankman-Fried pleaded not guilty in a Substack blog post Thursday.

“I did not steal funds, and I certainly did not hide billions,” Bankman-Fried wrote.

‘Almost all of my assets could and still are being used to stop FTX clients.’

The 30-year-old disgraced former crypto kingpin has accused Binance boss Changpeng ‘CZ’ Zhao of waging a long campaign to destroy his empire.

A bombshell statement on crypto exchange FTX co-founder Sam Bankman-Fried to transfer money to Alameda Research

A bombshell affidavit revealed that the co-founder of cryptocurrency exchange FTX was ordered by Sam Bankman-Fried to create a “secret” backdoor to transfer money to Alameda Research.

News of Bankman’s advocacy comes just days after the FTX co-founder said law enforcement was ordered by Bankman-Fried to create a “secret” backdoor to transfer money to Alameda Research.

FTX attorney Andrew Dietderich told a Delaware bankruptcy court on Wednesday that Gary Wang was instructed to set up a secret line of credit of client funds from FTX to the hedge fund.

Dietderich told the court that Wang ‘created this backdoor by inserting a single number into millions of lines of code for the exchange’, creating a line of credit that ‘customers did not consent to’.

Business Insider reports that an FTX attorney testified that the backdoor was “a secret way for Alameda to take unauthorized loans from customers on the exchange.”

FTX attorney Andrew Dietderich told a Delaware bankruptcy court on Wednesday that Gary Wang was instructed to set up a secret line of credit of client funds from FTX to the hedge fund.

FTX attorney Andrew Dietderich told a Delaware bankruptcy court on Wednesday that Gary Wang was instructed to set up a secret line of credit of client funds from FTX to the hedge fund.

Bankman-Fried was seen arriving at a hearing at the US Federal Court in New York on January 3.  He has pleaded not guilty to fraud and other criminal charges.

Bankman-Fried was seen arriving at a hearing at the US Federal Court in New York on January 3. He has pleaded not guilty to fraud and other criminal charges.

The judge scheduled the trial of the SBF to October 3 at the court hearing to be held on January 3.

The judge scheduled the trial of the SBF to October 3 at the court hearing to be held on January 3.

“Wang created this backdoor by inserting a single number into millions of lines of code for the exchange, creating an Alameda line of credit from FTX that customers were not happy with,” Dietderich testified earlier this week.

“And we know the size of that line of credit. It was $65 billion,” he said.

Bankman-Fried transferred $10 billion between the two companies, with another $2 billion still undisclosed, he told Reuters in November.

The attorney’s statement corroborates claims by the Commodity Futures Trading Commission, an independent federal agency that “regulates derivatives such as futures and swaps,” according to its website.

Last month, the CFTC filed charges against Wang and Alameda Research CEO Caroline Ellison, who was Bankman-Fried’s on-again, off-again girlfriend.

The CFTC accused Wang of creating a “virtually unlimited” secret line of credit. Dietderich’s testimony is believed to be the first time an FTX official has given a firm dollar value to a line of credit.

Wang and Ellison both pleaded guilty to federal charges including wire fraud and conspiracy. They cooperated with the investigators.

DailyMail.com has unearthed a photo from March 2021 showing the 30-year-old SBF winger holding his ex-girlfriend Caroline Ellison, 28, on her 29th birthday.  They are pictured with FTX co-founder Gary Wang (left).

DailyMail.com has unearthed a photo from March 2021 showing the 30-year-old SBF winger holding his ex-girlfriend Caroline Ellison, 28, on her 29th birthday. They are pictured with FTX co-founder Gary Wang (left).

He claimed that Zhao’s “fateful tweet” on November 6 capped “an extremely effective months-long PR campaign against FTX.”

“In November 2022, an extreme, rapid, targeted crash by Binance’s CEO bankrupted Alameda,” Bankman-Fried wrote.

The disgraced FTX founder’s business collapsed after Zhao tweeted that Binance had lost its position in FTX’s in-house digital token FTT.

The tweet caused a domino effect that pushed Bankman-Fried’s crypto hedge fund Alameda Research into bankruptcy, and FTX had to file for bankruptcy on November 11.

Bankman-Fried now faces eight felony charges of defrauding FTX investors whose money he held. He made his first appearance in a Manhattan court last month when a judge released him on $250 million bail.

On January 3, he pleaded not guilty to wire fraud and other criminal charges. The judge scheduled his trial for October 3.

Continuing to make public appearances like this is likely to raise eyebrows as he ignores lawyers who advise him to “get in the hole.” Lawyers said that such statements will make life difficult for his defense attorneys in the upcoming trial.



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