Stanford University Returns Millions from FTX

Stanford University has announced it will return millions it received from cryptocurrency exchange FTX. This follows reports that the parents of FTX founder, Sam Bankman-Fried, funneled at least €5.5 million in donations to their employers, Stanford University.

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Background: Why Stanford University has to return millions of euros

According to a report by Bloomberg, Stanford plans to return millions of euros worth of “gifts” it received from FTX. A spokesperson for the university confirmed that they are in talks with lawyers for the FTX debtors to reclaim these gifts and return the funds in full.

This announcement comes after FTX sued Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried. The allegation is that they “fraudulently transferred and misappropriated” millions of euros.

The role of Bankman and Fried

Between November 2021 and May 2022, Bankman directed donations of more than €5.5 million from FTX Group to his employer, Stanford University.

It was reported that the university received gifts from the FTX Foundation and FTX-related entities, primarily for pandemic-related prevention and research.

Allegations of misconduct

According to court documents, Bankman and Fried, both professors at Stanford Law School, allegedly used their access and influence within FTX to enrich themselves by millions.

It is alleged that they pushed for tens of millions of euros in political and charitable contributions, including to Stanford University. These contributions appeared to be aimed at enhancing the professional and social status of Bankman and Fried at the expense of FTX Group.

Response to Complaint

Legal representatives for Bankman-Fried’s parents denied the allegations, calling them “completely false.” They argued that this was a dangerous attempt to intimidate Joe and Barbara and undermine jury service just before their child’s trial began.

In conclusion, the situation between Stanford, FTX, and the parties involved remains tense. It remains to be seen how this matter will unfold in the weeks and months ahead.

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(Featured image by t_watanabe via Pixabay)

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