FTX Files Lawsuit Against Bankman-Fried's Parents Over Alleged Misappropriation

Crypto exchange FTX has filed a lawsuit against the parents of its founder, Sam Bankman-Fried, accusing them of using the company to enrich themselves at the expense of FTX's customers. The lawsuit alleges that Bankman-Fried ran FTX as a "family business" and misappropriated billions in customer funds for the benefit of a small circle of insiders, including his parents. Bankman-Fried has pleaded not guilty to charges of defrauding FTX customers, and other former FTX executives have pleaded guilty to criminal charges. FTX, which filed for bankruptcy in 2022, has recovered over $7 billion in assets to repay customers and is pursuing additional recoveries through lawsuits against insiders and other defendants.