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Crypto Exchange FTX Sues Founder's Parents for Fraudulently Transferred Funds

Crypto exchange FTX has filed a lawsuit against the parents of its founder and former CEO, Sam Bankman-Fried, accusing them of fraudulently transferring and misappropriating millions of dollars. The lawsuit seeks damages, the return of any property or payments made to the parents by FTX, and punitive damages resulting from their "conscious, willful, wanton, and malicious conduct."

The filing alleges that Bankman's knowledge of tax law and understanding of FTX's corporate structure allowed him to facilitate the transfer of a $10 million cash gift to himself and his parents. Bankman and Fried, both law professors at Stanford, are accused of using their expertise to enrich themselves and their pet causes.

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