Stanford to return millions in FTX donations amid lawsuit alleging misuse by SBF’s parents

1 year ago

Stanford University plans to instrumentality millions of dollars it received from the now-bankrupt crypto speech FTX and its affiliate companies, according to Bloomberg,

This determination comes amidst a lawsuit from FTX advisers seeking to reclaim funds owed to the exchange’s customers. The suit alleges that Allan Joseph Bankman and Barbara Fried, parents of FTX co-founder and erstwhile CEO Sam Bankman-Fried, exploited their power implicit FTX to straight and indirectly enrich themselves with millions of dollars. Bankman and Fried are ineligible scholars and longtime professors astatine Stanford Law School.

The suit explicitly alleges that Stanford received gifts totaling astir $5.5 cardinal from FTX-related entities betwixt Nov. 2021 and May 2022. A assemblage spokesperson told Bloomberg, “Stanford received gifts from the FTX Foundation and FTX-related companies mostly for pandemic-related prevention and research.”

Legal representatives for Bankman and Fried firmly refute the allegations, branding them arsenic “completely false.”

Specifically, Sean Hecker, counsel for Joe Bankman, and Michael Tremonte, counsel for Barbara Fried, told CryptoSlate that

“These claims are wholly false. Mr. Ray and his monolithic squad of lawyers, who are collectively moving up countless millions of dollars successful fees portion returning comparatively small to FTX clients, cognize better.”

Further, they stated that the suit was “a unsafe effort to intimidate” SBF’s parents and “undermine the assemblage process conscionable days earlier their child’s proceedings begins.”

Stanford University’s determination to instrumentality the donated funds mentioned successful the suit represents an effort to support ethical standards amidst the tumultuous landscape.

The station Stanford to instrumentality millions successful FTX donations amid suit alleging misuse by SBF’s parents appeared archetypal connected CryptoSlate.

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