FTX Lawsuit Update: John Deaton Questions DOJ’s Integrity in SBF’s Parents’ Legal Battle
The post FTX Lawsuit Update: John Deaton Questions DOJ’s Integrity in SBF’s Parents’ Legal Battle appeared first on Coinpedia Fintech News
FTX, the collapsed crypto platform, has taken legal action against its founder, Sam Bankman-Fried’s parents, in the wake of shocking revelations. One of the recent disclosures in this ongoing case is the claim that Sam Bankman-Fried’s mother actively encouraged him to make substantial donations to politicians, including a political action committee (PAC that she chaired).
This information has emerged from a lawsuit obtained by Insider, filed by lawyers involved in FTX’s bankruptcy proceedings, who are accusing Bankman-Fried’s parents of allegedly diverting millions of dollars from the company’s funds.
In response to these startling developments, John Deaton has voiced his concerns. He expressed that the lack of, at the very least, an investigation into the actions of Sam Bankman-Fried’s parents would raise serious questions about the integrity of the Department of Justice (DOJ). Deaton criticized politicians who promise to “drain the swamp” during their campaigns but, once elected, seem to prioritize their political allies and associates.
Deaton shared his thoughts on the matter on X, stating, “If there isn’t, at least, an investigation involving his two parents, the DOJ is truly a corrupt agency. These politicians claim they will drain the swamp once they get in. But when elected, all they do is place their own political operatives in power.”
Among the allegations made in the lawsuit are claims of substantial misappropriation of funds. It includes a $10 million gift that lawyers assert was used for Sam Bankman-Fried’s legal defense and a $16.4 million beachfront property in the Bahamas. FTX’s legal team is actively seeking to recover these funds to assist in reimbursing customers suffering from the company’s financial troubles.
Furthermore, the lawsuit alleges that Joseph Bankman, a tenured professor at Stanford University, played a significant role in FTX’s business and legal affairs. It suggests that beyond his official positions, he acted as a de facto officer, director, and manager, effectively becoming the primary decision-maker within the organization.
