Stanford to return millions in FTX donations amid lawsuit alleging misuse by SBF’s parents Stanford to return millions in FTX donations amid lawsuit alleging misuse by SBF’s parents
Returning tainted FTX gifts, Stanford makes a stand for ethics.'
1 min read
Updated: Sep. 20, 2023 at 11:21 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Stanford University plans to return millions of dollars it received from the now-bankrupt crypto exchange FTX and its affiliate companies, according to Bloomberg,
This decision comes amidst a lawsuit from FTX advisers seeking to reclaim funds owed to the exchange’s customers. The lawsuit alleges that Allan Joseph Bankman and Barbara Fried, parents of FTX co-founder and former CEO Sam Bankman-Fried, exploited their influence over FTX to directly and indirectly enrich themselves with millions of dollars. Bankman and Fried are legal scholars and longtime professors at Stanford Law School.
The lawsuit explicitly alleges that Stanford received gifts totaling approximately $5.5 million from FTX-related entities between Nov. 2021 and May 2022. A university spokesperson told Bloomberg, “Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research.”
Legal representatives for Bankman and Fried firmly refute the allegations, branding them as “completely false.” Specifically, Sean Hecker, counsel for Joe Bankman, and Michael Tremonte, counsel for Barbara Fried, told CryptoSlate that
“These claims are completely false. Mr. Ray and his massive team of lawyers, who are collectively running up countless millions of dollars in fees while returning relatively little to FTX clients, know better.”
Further, they stated that the suit was “a dangerous attempt to intimidate” SBF’s parents and “undermine the jury process just days before their child’s trial begins.”
Stanford University’s move to return the donated funds mentioned in the suit represents an attempt to maintain ethical standards amidst the tumultuous landscape.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
FTX US Derivatives
FTX US Derivatives is a digital currency futures and options exchange and clearinghouse regulated by the US Commodity Futures Trading Commission (CFTC).
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.