Allan Joseph Bankman, also known as Joe Bankman, is a professor of law at Stanford University, the husband of Barbara Fried, and the father of disgraced crypto-currency billionaire and Democratic mega-donor Sam Bankman-Fried.

Controversies

Ties to Arabella Advisors

In September 2023 a federal lawsuit against the parents of cryptocurrency entrepreneur and Democratic mega-donor Sam Bankman-Fried (SBF) alleged a significant purported connection between Allan Joseph Bankman, SBF’s father, Arabella Advisors, and the Arebella-controlled New Venture Fund. The lawsuit, filed by FTX, the defunct cryptocurrency exchange co-founded by SBF, alleged that Allan Joseph Bankman used the Arabella network to channel his son’s contributions to nonprofit organizations and claimed that Bankman sat “on the advisory board” of Arabella Advisors. According to the suit, FTX had established an arrangement with Arabella’s largest affiliate nonprofit, the New Venture Fund (NVF), which allowed the crypto exchange and its donors to contribute to select charitable causes through NVF. ^{1 2}

Although the extent of Allan Joseph Bankman’s involvement with Arabella Advisors was not made clear, the lawsuit provided evidence of his alleged discussions of Arabella and its nonprofit arm, NVF, as vehicles for moving money while concealing its origin. “We considered having funds made available by Sam through Arabella, through our own 501(c)(3), through a foreign entity with a 501(c)(3)-like charter, and through Alameda as a public benefit corporation,” Bankman reportedly said.

FTX’s legal action accused Allan Joseph Bankman and his wife, Barbara Fried, both Stanford Law professors and major Democratic donors, of contributing to FTX’s demise through breaches of fiduciary duties, fraudulent transfers, and unjust enrichment. The lawsuit cited Bankman’s discussions about his son’s partnership with Arabella as evidence of his “unfettered access” to FTX’s finances.

The lawsuit also stated that the FTX Foundation donated $8 million to NVF in 2021, for an unspecified fiscally sponsored project. A spokesperson for NVF confirmed that NVF worked with the FTX Foundation to provide fiscal sponsorship services saying, “In early 2022, NVF issued grants from a project affiliated with Mr. Bankman and the FTX Foundation, all of which went to carefully vetted charitable organizations addressing environmental challenges and hunger … This is a pending legal matter, and the remaining money will be returned based on resolution of that process.”

Steve Sampson, spokesman for Arabella Advisors, told reporters at the Washington Free Beacon, that Bankman never sat on the advisory board of the company, saying that Bankman “has never had any role at Arabella Advisors. ³

1. Kaminsky, Gabe. “Sam Bankman-Fried’s Father Advised Top Liberal Dark Money Network Arabella Advisors: Lawsuit.” Washington Examiner, September 20, 2023. https://www.washingtonexaminer.com/policy/economy/sam-bankman-fried-father-liberal-dark-money-network-arabella-advisors.
2. Andrew Kerr, “Lawsuit Unearths Link Between Dem Megadonor SBF, Parents, and Democratic Dark Money Behemoth Arabella Advisors,” Washington Free Beacon, September 20, 2023, https://freebeacon.com/democrats/sam-bankman-frieds-dad-secretly-advised-democratic-dark-money-kingpin-arabella-advisors/.
3. Andrew Kerr, “Lawsuit Unearths Link Between Dem Megadonor SBF, Parents, and Democratic Dark Money Behemoth Arabella Advisors,” Washington Free Beacon, September 20, 2023, https://freebeacon.com/democrats/sam-bankman-frieds-dad-secretly-advised-democratic-dark-money-kingpin-arabella-advisors/.