Joseph Bankman, Barbara Fried and Sam Bankman Fried’s parents have asked a judge to dismiss a suit filed by the bankrupt cryptocurrency FTX to recover money it claims was fraudulently transferred.

In September 2023, FTX attempted to ” recoup millions of dollars from Bankman and Fried. In less than two months, their son Bankman-Fried ,, was found guilty of all seven charges for defrauding the United States and its customers. The sentencing of his case is expected to take place in March.

Bankman and Fried, two professors from Stanford Law School, argued Bankman had no fiduciary relationships with FTX, and that he did not serve as “a director, officer or manager.” Even if a relationship did exist with FTX, it was not enough to allege a breach in a court filing dated Jan. 15.

The court filing argues that it’s not enough that FTX merely pleaded that the parents “knew” or “should have known”. The filing argues that FTX must have provided specific facts that show “actual knowledge” of the parents’ “knowledge that certain actions will result in a fiduciary breach.”

FTX has not stated the amount that Bankman and Fried have misappropriated in its September 2023 lawsuit, but they did list certain items. Bankman was paid an annual salary in excess of $200,000 as a senior advisor to the FTX Foundation, he received more than $18,000,000 for the Bahamas property, and FTX donated $5.5 million to Stanford University. The university said it would return.

Read more: FTX Bankruptcy Estate sues Sam Bankman Fried’s parents, Joseph and Barbara to claw back’misappropriated funds’

Parikshit Miishra is the editor.