Stanford University to Refund FTX's Donated 'Gifts': Report

Police & Regulations
Sep 21, 2023 at 09:06 am

FTX has taken legal action against Joseph Bankman and Barbara Fried, accusing them of mishandling significant amounts, including a $5.5 million donation initially intended for Stanford University.

As a result, Stanford University has announced its intention to reimburse what it refers to as "gifts," valued at millions, received from FTX. These contributions were purportedly facilitated by Sam Bankman-Fried's parents, as detailed in a Bloomberg report.

Joseph Bankman and Barbara Fried, both professors at Stanford Law School, have been named as defendants in the lawsuit filed by the FTX Group. They are accused of mishandling substantial sums, including the $5.5 million earmarked for Stanford University.

A representative from Stanford University has conveyed:

"We have engaged in conversations with legal representatives of the FTX debtors in order to retrieve these contributions, and we are committed to returning the entire sum." They further emphasized that the contributions were predominantly earmarked for efforts related to pandemic prevention and research."

The parents facing accusations strongly refute all claims, asserting their complete lack of merit. Meanwhile, their son, Sam Bankman-Fried, who previously founded and led the now-closed FTX cryptocurrency exchange, is gearing up for an impending trial while being held in custody.

In response to the lawsuit, attorneys representing the parents issued a joint statement to Bitsday, stating, "This is a perilous attempt to intimidate Joe and Barbara and subvert the jury process just days before their child's trial commences."

At the time of the release of this report, neither Stanford University nor representatives of Joseph Bankman and Barbara Fried had provided a response to Bitsday's request for commentary on Stanford's reported decision, which was conveyed after regular business hours in the U.S.

Read more: Elon Musk's Venture Secures Multi-State Licenses for Payment Processing, Including Cryptocurrency

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