SEC Nominee Questioned About Sam Bankman-Fried’s Parents During Senate Hearing

TLDR

• Senator John Kennedy pressed SEC nominee Paul Atkins about investigating SBF’s parents during Senate hearing
• Kennedy threatened to “pounce like a ninja” for updates on potential SEC investigation
• SBF’s parents allegedly received a $16.4 million Bahamas mansion and millions in other benefits from FTX
• Reports suggest SBF’s parents are seeking a presidential pardon for their son
• Atkins expressed concern about the reports but did not commit to specific actions

Louisiana Republican Senator John Kennedy put SEC Chairman nominee Paul Atkins on notice during a Senate Banking Committee hearing on March 27, 2025. Kennedy demanded the SEC investigate the parents of disgraced FTX founder Sam Bankman-Fried.

The hearing marked Atkins’ nomination process as President Donald Trump’s pick to lead the Securities and Exchange Commission. Kennedy used his five-minute questioning period to focus entirely on the FTX case and the role of Bankman-Fried’s parents.

“Every time you come to this committee, I’m going to pounce on you like a ninja to find out what the SEC has done,” Kennedy warned Atkins. “Because I don’t think the SEC’s done a damn thing.”

Kennedy’s concerns center on the alleged benefits received by Barbara Fried and Joseph Bankman, both Stanford Law School professors and parents of the convicted FTX founder. According to a complaint filed by FTX in September 2023, the couple received several valuable assets from the now-bankrupt crypto exchange.

These assets reportedly included a $16.4 million mansion in the Bahamas, $10 million in cash, and another $10 million donation to Fried’s “Mind the Gap” political organization. An additional $5.5 million was allegedly donated to Stanford University, where both parents taught.

“They’re crooks and I expect the SEC to do something about it,” Kennedy stated during the hearing. His forceful tone reflected frustration shared by many crypto industry observers and conservatives who believe Bankman-Fried received preferential treatment despite his 25-year prison sentence.

Atkins responded cautiously to Kennedy’s questioning. “Like you, I’m concerned about those reports,” Atkins said. “I look forward to getting to the SEC to find out what has happened.”

The nominee explained that he was not at the Commission during the FTX crisis in late 2022. He agreed to review the SEC’s work on investigating the involvement of Bankman-Fried’s parents when he takes office.

Pardon Rumors and Prison Developments Intensify Scrutiny

Kennedy also referenced reports that Bankman-Fried’s parents were seeking a presidential pardon for their son. “I read in the paper that the Bankman-Frieds were trying to get a pardon,” Kennedy said during the hearing.

The pardon reports emerged in January 2025, following President Trump’s pardon of Silk Road founder Ross Ulbricht. According to William Livolsi, head of the White Collar Support Group, an SBF pardon seems unlikely due to the direct financial harm involved in the FTX case.

Bankman-Fried’s parents filed a motion to dismiss the FTX complaint on January 15, 2024. They claimed they were not FTX officers, were not employed by the exchange, and did not aid anyone in defrauding company clients.

The lawsuit against Bankman-Fried’s parents was dismissed without prejudice last month. This means the case can be reintroduced in the future.

Recent developments in the SBF case include an unsanctioned prison interview with Tucker Carlson in March 2025. Following this interview, Bankman-Fried was placed in solitary confinement and transferred from a New York facility to one in Oklahoma.

During the Carlson interview, Bankman-Fried claimed he had given money to Republican candidates “as much as Democrats.” He also hinted at becoming more conservative in recent years.

Kennedy’s line of questioning also touched on Stanford University’s role in the situation. He pressed Atkins about whether the SEC had investigated the $5.5 million donation to Stanford. In 2023, the university announced it would return these funds.

The hearing reflected broader conservative skepticism of elite universities. Kennedy emphasized his belief that “there should not be two standards of law and punishment for people in America.”

While Kennedy was the only senator to question Atkins specifically about the FTX crisis, the hearing generally broke along party lines. Republicans appeared pleased with Atkins, viewing him as more reasonable than his predecessor Gary Gensler.

Democrats raised concerns about Atkins’ role as an SEC commissioner before the 2008 financial crisis. Senator Elizabeth Warren questioned potential conflicts of interest arising from Atkins’ position as CEO of Potomak Global Partners, a regulatory compliance consultancy with clients overseen by the SEC.

Atkins has committed to divesting from his stake in Potomak within three months of his confirmation. The Senate Banking Committee is expected to approve his nomination, after which a full Senate confirmation vote will follow.

As the confirmation process moves forward, Senator Kennedy has made it clear he intends to hold Atkins accountable for investigating the Bankman-Fried family’s connections to the FTX collapse.