to charges that he cheated investors and looted customer deposits to make lavish real estate purchases, campaign contributions to politicians, and risky trades at Alameda Research, his cryptocurrency hedge fund trading firm. His trial on federal fraud charges is scheduled to begin Oct. 3 in Manhattan.
“Despite presenting itself to investors and the public as a sophisticated group of cryptocurrency exchanges and businesses, the FTX Group was a self-described ‘family business,’” the lawsuit states. Among other things, the lawsuit alleges that the couple helped orchestrate a scheme in which their son gave them a nontaxable “gift” of $10 million. The scheme involved Bankman-Fried receiving a loan from Alameda, then transferring the money to his parents. The lawsuit describes the transaction as “part of a scheme and pattern to enrich and otherwise benefit themselves.”
Fried is accused of encouraging her son and other FTX insiders to make unlawful political contributions, including to “Mind the Gap,” or MTG, a political action committee she co-founded and for which she served as president and chairwoman.