Joe Bankman’s Involvement in FTX Operations Revealed
Introduction
Joe Bankman, a law professor at Stanford, has been funding his son’s legal defense after SBF gifted him $10 million from company funds, according to a complaint filed by the company.
Increased Attention
These occurrences have garnered him more attention, but Bankman also appears to have been more closely involved with FTX operations than was previously known.
Super Bowl Ad Cameo
This largely began when he made a cameo in FTX’s Super Bowl ad with Larry David, dressed as a founding father in a powdered wig. Bankman became an employee at his son’s company shortly afterwards, per Bloomberg.
Assistance in Legal Matters
Former staff from Alameda, FTX’s sister hedge-fund, told Bloomberg that Bankman also helped draft early legal documents.
Involvement in Marketing
Invoices from the company’s law firm list him as an attendee in meetings, showing he was also involved in developing marketing materials for the crypto exchange’s own currency, FTT, Bloomberg reported.
Role in FTX’s Collapse
That’s especially interesting because FTT played a major role in the crypto exchange’s collapse. When CoinDesk reported on a leaked balance sheet last November, it showed that much of Alameda’s $14.6 billion of assets were actually made up of the crypto invented by FTX.
Bankruptcy Filing
Nine days later — after customers rushed to withdraw their deposits and the company couldn’t cover demand, partially due to FTX executives’ lavish spending — it filed for bankruptcy.
Consulting His Father
One former staffer also told Bloomberg that Bankman-Fried appeared to frequently consult his father. When there was any legal suggestion from an employee, SBF would say he needed to “call Joe” first, the person said.
No Immediate Response
Bankman did not immediately respond to Insider’s request for comment, sent outside US working hours.
