Sam Bankman-Fried claimed to have only $100,000 to his name in the immediate aftermath of the FTX collapse. So how is he bankrolling his legal defense?

A $11.7 Million Gift

As Sam Bankman-Fried’s legal difficulties keep increasing, observers have been wondering how he has been able to afford his legal counsel. 

According to a new report from Forbes, former FTX CEO Sam Bankman-Fried has been paying for his legal bills with funds originally belonging to Alameda Research. 

Bankman-Fried reportedly borrowed over $10 million from Alameda in 2021 and arranged to give the money to his father, Joseph Bankman, by using his lifetime estate and gift tax exemption. According to Forbes, the tax-free gift—believed to have been worth $11.7 million—has been used to pay for Bankman-Fried’s defense. “I’ll be spending substantially all of my resources on Sam’s defense,” Bankman previously stated. Bankman-Fried’s parents have already leveraged their multi-million dollar Palo Alto property to help secure the disgraced crypto founder’s $250 million bail package.

Bankman-Fried has retained the services of Mark Cohen and Christian Everdell of Cohen & Gresser, who previously represented Ghislaine Maxwell during her sex-trafficking trial. His legal bills are likely to reach several millions of dollars. 

The FTX co-founder had previously attempted to take control of his 56 million Robinhood shares (currently worth approximately $507 million) and use them to pay for his bills. However, the Department of Justice seized the shares as they were suspected of having be

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Author: Tom Carreras

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