Coinspeaker
Stanford University to Return Millions in Gifts Linked to FTX amid Controversy
Stanford University has decided to return millions of dollars in gifts it received from the now-bankrupt crypto exchange FTX following allegations of impropriety involving the parents of FTX’s founder Sam Bankman-Fried (SBF).
The gifts in question, initially received by Stanford from the FTX Foundation and related entities, were purportedly intended for pandemic-related prevention and research initiatives, according to a spokesperson for Stanford University. However, recent legal actions have cast doubt on the legitimacy of these donations.
Stanford University to Return Donations Received from FTX
In an emailed statement to Bloomberg, the university’s spokesperson said the school is currently in discussions with attorneys representing FTX’s creditors to facilitate the return of these funds, which could be worth millions of dollars.
“We have been in discussions with attorneys for the FTX debtors to recover these gifts, and we will be returning the funds in their entirety,” said a Stanford University spokesperson.
The move comes shortly after the beleaguered crypto exchange FTX filed a lawsuit against the parents of its founder, Joseph Bankman and Barbara Fried, both distinguished professors at Stanford Law School. The lawsuit alleged that Bankman and Fried misappropriated millions of dollars from FTX’s coffers for personal gain.
Among the allegations is the claim that SBF’s father, Bankman, directed over $5.5 million in donations from the FTX to Stanford University. The lawsuit further suggested that both professors were either aware of or chose to ignore numerous red flags indicating fraudulent activity by their son and his business associates.
SBF’s Parents Denies Allegations, Calls Them Completely False
In response to the lawsuit, attorneys representing Bankman and Fried have issued a vehement denial of the allegations, asserting that they are “completely false.” The lawyers also claimed the lawsuit was an attempt to disrupt the legal process on the eve of their child’s trial.
Importantly, neither of the accused professors has faced criminal charges related to the FTX allegations.
Last year, after FTX filed for Chapter 11 bankruptcy protection in November, its property records showed that it acquired properties worth approximately $121 million in the Bahamas before its demise.
The document also showed the signatures of SBF’s parents as the owners of a luxury home in Old Fort Bay, a secluded community that served as home to a British colonial fort. The house was built in the 1700s to protect the residents against pirates.
According to the records, the expensive apartment will be a vacation home for the family. Nevertheless, a spokesperson representing the Stanford professors said that Mr. and Mrs. Bankman and Fried have actively sought to return the property’s deeds to the company ever since the commencement of its bankruptcy proceedings.
Meanwhile, their son, the 31-year-old founder of FTX, faces multiple charges of fraud and conspiracy in the United States. Despite pleading not guilty to the criminal allegations, his trial will commence next month, October 3.
Stanford University to Return Millions in Gifts Linked to FTX amid Controversy
