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Sam Bankman-Fried paid lawyers with money he gave his parents

In 2021, former FTX CEO Sam Benkman-Fried donated $11.7 million to his father. People who wished to remain anonymous said the gift was financed by a loan from the exchange’s trading firm, Alameda Research.

The costs of protecting the scandalous crypto businessman are measured in millions. The SBF itself stated:

“I didn’t steal money and I certainly didn’t hide billions,” he wrote.

After receiving a loan from Alameda, Sam sent the funds to his father. In doing so, he used the exemption from inheritance and gift tax. The donation required the SBF to file a tax return, which is not a public document.

A month ago, the elder Benkman, along with his wife, received subpoenas from FTX attorneys demanding that they provide them with personal financial statements and records of any assets transferred to them by FTX companies or employees. Against this background, the father supported his son:

“I will spend virtually all of my resources protecting Sam.”

While there is no exact information about how much Bankman-Fried owed for legal fees, but his parents used their own assets to financially support their son. In late 2022, they used their $1.8 million home to secure a $250 million bail package after Sam was released on bail.

Source: Cryptocurrency

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