Stanford Returns Donations from FTX Following Lawsuit
Stanford University has decided to return all donated funds from the defunct cryptocurrency exchange FTX. The decision came after discussions with FTX’s attorneys and is aimed at recovering the funds in their entirety. The donations were made by FTX Foundation and its related entities for pandemic-related prevention and research purposes.
FTX Alleges Millions in Donations to Stanford
In a recent court filing, FTX alleged that Allan Joseph Bankman, the father of SBF (Sam Bankman-Fried), directed over $5.5 million in donations from FTX Group to Stanford University between November 2021 and May 2022. The company claimed that Bankman and his wife Barbara Fried made these donations to boost their professional and social status, at the expense of FTX Group and its customers.
Stanford Wants to Avoid Legal Battle
Stanford University’s decision to return the funds suggests that they do not want to be involved in a prolonged legal battle. SBF’s parents have denied the allegations, calling them completely false. The timing of the lawsuit against them, just days before their son’s trial began, was seen as suspicious.
FTX’s Recovery Efforts
The lawsuit against SBF’s parents is part of FTX’s efforts to recover funds as it settles its creditors and potentially restarts operations. So far, the company has recovered $7 billion, with over $3.4 billion in crypto assets. FTX has pursued debtors like Genesis and investigated charitable donations made by Sam Bankman-Fried to various organizations.
Hot Take: Stanford Returns Donations Amid Allegations
Stanford University has chosen to return all donations received from FTX, a defunct cryptocurrency exchange, following allegations made against SBF’s parents. The decision comes after discussions with FTX’s attorneys and aims to recover the funds in their entirety. FTX alleged that over $5.5 million in donations were directed to Stanford University by Allan Joseph Bankman, SBF’s father, to enhance their professional and social status. However, Stanford seems eager to avoid a legal battle and has returned the funds. This development is part of FTX’s broader recovery efforts as it recovers billions of dollars and pursues legal action against various individuals and organizations.
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