Stanford University to Return Millions in Gifts from FTX
Stanford University has announced that it will be returning millions of dollars in “gifts” it received from collapsed crypto exchange FTX. The gifts were offered by the FTX Foundation and FTX-related companies for pandemic-related prevention and research. The university has been in discussions with attorneys for the FTX debtors to recover these gifts and will return the funds in their entirety.
Lawsuit Filed Against Sam Bankman-Fried’s Parents
A lawsuit has been filed by the FTX Bankruptcy Estate against Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, who are both professors at Stanford Law School. They are accused of using their influential roles within the FTX enterprise for personal gain and channeling millions of dollars to various entities, family, and friends. The lawsuit alleges that Joseph Bankman directed over $5.5 million from FTX Group to Stanford University between November 2021 and May 2022.
Creative Means to Channel Funds
The lawsuit details the various creative means by which Joseph Bankman directed funds to Stanford University through different FTX Group entities. For example, he inquired about a $500,000 donation from Paper Bird to Stanford and subsequently established a Paper Bird account that received deposits totaling $1.5 million from an FTX Trading account. The filing also mentions a proposed $4 million donation processed via a Bitcoin transaction from an FTX account.
Hot Take: Stanford Returns Gifts from FTX Amid Lawsuit
Stanford University has decided to return millions of dollars in gifts it received from collapsed crypto exchange FTX, following a lawsuit filed against Sam Bankman-Fried’s parents. The university has been in discussions with attorneys for the FTX debtors and will be returning the funds in their entirety. The lawsuit alleges that Joseph Bankman, a professor at Stanford Law School, directed over $5.5 million from FTX Group to Stanford University for personal gain. The lawsuit outlines various creative means by which the funds were channeled to the university. Stanford’s decision to return the gifts highlights its commitment to ethical practices and accountability.
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