Stanford University to Return $5.5 Million in FTX Donations Linked to Founder’s Father
Stanford University has announced that it will return $5.5 million in “gifts” it received from cryptocurrency exchange FTX. The decision comes after the FTX bankruptcy estate filed a lawsuit against Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, seeking to recover fraudulently transferred funds.
The university spokesperson stated that they have been in discussions with the attorneys representing the FTX debtors and will be returning the funds in full.
FTX Accuses Bankman and Fried of Enriching Themselves
In its court filing, FTX accused Joseph Bankman and Barbara Fried, who are both professors at Stanford Law School, of using their influence at the exchange to enrich themselves by millions of dollars. The filing revealed that Bankman directed over $5.5 million in donations from the FTX Group to Stanford University between November 2021 and May 2022.
The gifts received by Stanford were intended for pandemic-related prevention and research, according to the university.
Bankman-Fried’s Parents Deny Misappropriation Charges
The lawyers representing Joseph Bankman and Barbara Fried have denied the allegations made by FTX, stating that they are false and an attempt to intimidate their clients. They believe this is an effort to undermine the jury process before their child’s trial on fraud charges begins next month.
Hot Take: Stanford Returns FTX Donations Amid Lawsuit
Stanford University has decided to return $5.5 million in donations it received from FTX amidst a legal battle involving Sam Bankman-Fried’s parents. The university spokesperson confirmed that they will be returning the funds in their entirety. FTX has accused Bankman and Fried of using their influence at the exchange to enrich themselves, leading to the transfer of millions of dollars. The gifts received by Stanford were intended for pandemic-related purposes. Bankman and Fried deny these allegations, labeling them as false and an attempt to interfere with the upcoming trial of their child on fraud charges.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.