May 29, 2024
Stanford University to Return Millions in Gifts from FTX Amid Legal Battle
Policy & Regulation

Stanford University to Return Millions in Gifts from FTX Amid Legal Battle

According to a Bloomberg story, Stanford University stated that it intended to return the “gifts” worth millions of dollars that it received from the defunct cryptocurrency exchange FTX.

In an interview with Bloomberg, a university representative said that the institution has been “in discussions with attorneys for the FTX debtors to recover these gifts, and we will be returning the funds in their entirety.”

Stanford’s remarks follow FTX’s Monday lawsuit against Sam Bankman-Fried’s parents, Joseph and Barbara Bankman, to recoup millions of dollars in “fraudulently transferred and misappropriated funds.”

“From November 2021 to May 2022, Bankman led the charge in directing FTX Group donations of more than $5.5 million to his employer, Stanford University,” a Monday court filing wrote.

According to the report, the Stanford spokesman stated that the university received donations from the FTX Foundation and FTX-related organizations primarily for pandemic-related prevention and research.

According to the court document, Stanford Law School professors Fried and Bankman “exploited their access and influence” within FTX to make millions of dollars for themselves.

The petition claimed that Fried and Bankman pushed for tens of millions of dollars to be donated to political and charity causes, including Stanford University, “which were seemingly designed to boost Fried and Bankman’s professional and social status at the expense of the FTX Group.”

The legal counsel for Bankman-Fried’s parents responded to the complaint by calling the allegations “completely false.”

“This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child’s trial begins. These claims are completely false,” Sean Hecker, counsel to Joe Bankman, and Michael Tremonte, counsel for Barbara Fried, stated.

“Mr. Ray and his massive team of lawyers, who are collectively running up countless millions of dollars in fees while returning relatively little to FTX clients, know better,” they stated.


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