Stanford University in Talks to Return Gifts from FTX
Stanford University is currently negotiating with the attorneys representing FTX to return all the gifts it received from the bankrupt crypto exchange and related entities. This decision comes after a lawsuit was filed against the parents of Sam Bankman-Fried, the founder and former CEO of FTX, who allegedly used their influence with the exchange to enrich themselves by millions of dollars. Both Barbara Fried and Joseph Bankman were tenured professors at Stanford Law School.
Attorneys Deny Allegations
In response to the allegations of fraudulent transfers made by FTX, the attorneys for Bankman and Fried have called them completely false and a dangerous attempt to intimidate their clients. They argue that these allegations are meant to undermine the jury process just days before their child’s trial begins.
Gifts for Pandemic-Related Prevention and Research
According to a spokesperson from Stanford University, the gifts received from FTX and its related companies were largely intended for pandemic-related prevention and research. The university has been in discussions with FTX’s attorneys to recover these gifts and plans to return the funds in their entirety.
About Barbara Fried and Joseph Bankman
Joseph Bankman is well-known for his work on tax compliance problems posed by the cash economy, while Barbara Fried has received multiple awards for excellence in teaching and has written extensively on distributive justice, tax policy, property theory, and political theory.
This is What FTX Estate Reveals
In an interview with the New York Times in December 2022, Sam Bankman-Fried stated that his parents weren’t involved in the relevant parts of FTX’s business. However, a lawsuit filed by the FTX estate claims that Bankman sought to distance himself publicly from the donations. Stanford University understood that Bankman and his family were responsible for the donations, as confirmed by a university employee.
The allegations from the estate state that FTX was a family business and that Bankman-Fried’s parents siphoned millions of dollars from the crypto empire. The filing also alleges that Bankman directed FTX employees to transfer $500,000 in donations to Stanford, taken from another legal entity controlled by his son Sam.
Hot Take: Stanford University to Return Gifts from FTX
Stanford University is currently in discussions with FTX’s attorneys to return all the gifts it received from the bankrupt crypto exchange and related entities. These gifts were largely intended for pandemic-related prevention and research. The move comes after a lawsuit alleged that Sam Bankman-Fried’s parents exploited their influence with FTX to enrich themselves by millions of dollars.
The attorneys representing Bankman and Fried deny these allegations, calling them false and an attempt to intimidate their clients. Stanford University plans to return the funds in their entirety. The allegations made by the FTX estate claim that FTX was a family business and that Bankman-Fried’s parents siphoned millions of dollars from the crypto empire.
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