Sam Bankman-Fried's mom says prosecutors and bankruptcy estate are 'McCarthyite' and on a 'relentless pursuit of total destruction'
- Sam Bankman-Fried and his parents spoke to The New Yorker ahead of his trial next Tuesday.
- His parents have been accused by the bankruptcy estate of siphoning millions of dollars from FTX.
Sam Bankman-Fried's mom hit out at prosecutors and the FTX Debtors ahead of the crypto-exchange founder's trial next Tuesday, The New Yorker reported.
In an email to the publication, Barbara Fried described the prosecutors and bankruptcy estate as "McCarthyite" and on a "relentless pursuit of total destruction."
And she said they were being enabled by "a credulous public that will believe anything they say."
The term "McCarthyite" refers to the senator who led a campaign targeting people with left-wing politics and spread fear of communist influence in the US during the 1950s. In modern parlance it is often used to describe exaggerated accusations and the idea of a political witch hunt against people who hold what they perceive to be non-conformist ideals.
The FTX Debtors filed a lawsuit against Bankman-Fried's parents last Monday, accusing them of siphoning millions of dollars from the crypto exchange. The couple's attorneys described the allegations as "completely false" and a "dangerous attempt to intimidate" them.
Emails cited in the lawsuit also said that Bankman-Fried's dad, Joe Bankman, was upset with his $200,000 salary from FTX because he thought he would be paid $1 million by his son's crypto firm.
FTX also purchased a $16.4 million beachfront house in the Bahamas for Bankman-Fried's parents, lawyers said.
"It takes a lifetime to build up a reputation as honorable people," Fried, a Stanford professor emeritus and cofounder of the Mind the Gap PAC, told The New Yorker. "It takes five minutes to destroy it, which they now have done."
Bankman-Fried has pleaded not guilty to seven criminal charges, including wire fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering. He could face over 100 years in prison if found guilty on all charges.
"I think most parents would much rather die, frankly, than see their child accused of such horrible things," his dad told The New Yorker.
While on house arrest at his parents' home, Bankman-Fried told the publication he was unaware that FTX customers' money was being used to plug holes created by trading losses from its sister trading-firm, Alameda.
"Sam will never speak an untruth," Fried told The New Yorker.
"I don't care what is said about me, Joe doesn't care what is said about him," she added. "Saving Sam is the major project of our lives."
The FTX Debtors and Fried's attorney did not immediately respond to Insider's request for comment, sent outside US working hours.
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