In the midst of a legal tussle over alleged financial improprieties, Stanford University has stepped forward with a commitment to return millions of dollars and associated assets it received from the embattled crypto exchange, FTX.
A spokesperson for the prestigious institution conveyed in a concise email statement, “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.”
This development comes on the heels of a lawsuit initiated by FTX advisers, aiming to recuperate owed funds for customers affected by the exchange’s bankruptcy. The lawsuit contends that Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, leveraged their influence within FTX to accrue substantial financial gains, both directly and indirectly, amounting to millions of dollars.
Joseph Bankman and Barbara Fried, notable legal scholars and longtime professors at Stanford Law School, found themselves at the center of this legal maelstrom. It is alleged that between November 2021 and May 2022, Stanford University received a total of approximately $5.5 million in gifts from FTX-affiliated entities.
In response to the allegations, a spokesperson for the university clarified, “Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research.”
It’s worth noting that Bankman and Fried’s legal representatives vehemently refuted the allegations of fraudulent transfers made by FTX, labeling them as “completely false.” However, in light of Stanford University’s commitment to returning the funds, the legal saga surrounding this matter continues to unfold. Representatives for Bankman and Fried have refrained from offering additional comments at this time.
As this legal battle persists, it raises questions about the intricate relationships between educational institutions and the crypto industry, shedding light on the importance of transparency and financial integrity in such affiliations.