Stanford University received $1 million in donations from FTX. Now you will have to return them

The effects of the FTX Group debacle are still being felt nearly a year after the once-common debacle exchange Filed for US Bankruptcy Law. More than 10 months after this decision and the downfall of the company’s founder and then-CEO, Sam Bankman-Fried, the FTX scandal left an unexpected victim: Stanford University.

The reason: the money he earned at that time.

A poisoned gift. In retrospect, this is what Stanford received at the time com. cryptoexgange FTX and persons associated with the platform. Without specifying amounts, dates, or going into details, the University of California admitted to media outlets such as From the insideseries CNN also AP News Who has received gifts from the FTX Foundation and related companies.

How much is a mystery. why not. Stanford confirms that a “large portion” of the contributions was allocated to “prevention and research related to the epidemic.” Now the officials Guaranteed They will return the money.

But…why this decision? To understand this, you first have to know the context. The university’s decision to get rid of the “gifts” comes after a lawsuit against the parents of the FTX founder alleges that the California foundation received millions of dollars in donations. That these amounts ended up in that American center and not in another center was not a coincidence. Bankman Fried’s father and mother, Joe Bankman And Barbara Friednow retired, is associated with Stanford University as a law professor.

FTX’s lawsuit against the parents of its former CEO provides some interesting details and amounts. The text confirms that in his day Bankman was able to personalize More than 5.5 million of dollars in donations from FTX to Stanford University, the institution where he worked. The purpose of the complaint is to recover funds “fraudulently transferred and misappropriated” by Joe Bankman and Barbara Freed. Picking up on the words of FTX Lawyer, They are accused of this Diverting “millions of dollars from FTX Group to his personal benefit and favorite causes.”

What does the university say? the demand Strong asserts that by allocating more than $5.5 million from FTX to Stanford University, Bankman sought to “curry favor and enrich his employer” at the expense of the group, which ended up going bankrupt. The accusation is serious enough for those responsible for the California institution I decided to speak up. They did this to convey two messages.

First, the money they received was raised “largely for prevention and research related to the epidemic.” The second message, and this is perhaps the most relevant, is that they are determined to return the money. “We have been in discussions with attorneys for FTX’s debtors to recover these gifts and will return the money in full.” Confirms.

And my father’s Bankman Fried? From the beginning, as well Remember CNNIt is important to clarify that to date neither Bankman nor Fried have been criminally accused of wrongdoing. But his lawyers quickly issued another statement in which they described the accusations as “completely false.”

The lawyers go even further and describe the content as a “dangerous attempt to intimidate” the parents of the former FTX CEO “and undermine the jury process just days before their son’s trial begins.” on demand He carries that Bankman and Fried accepted a gift worth approximately $10 million and a luxury estate worth $16.4 million in the Bahamas from FTX.

And now this? If there are no changes, Sam Bankman Fried will go to trial On October 3 On fraud charges following the company’s collapse nearly a year ago exchange FTX, which is now run by a restructuring specialist John Ray.

Cover Photo: FTX

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