Stanford University has announced that it will be returning “gifts” it received from FTX, a cryptocurrency exchange. The donations, allegedly orchestrated by Joseph Bankman and Barbara Fried, professors at Stanford Law School and parents of FTX founder Sam Bankman-Fried, are said to be worth millions of dollars.
According to a Bloomberg report, the FTX Group has filed a lawsuit against Bankman and Fried, accusing them of misappropriating millions, including $5.5 million in donations intended for Stanford University.
In response to the allegations, a spokesperson from Stanford University stated that they have been in discussions with attorneys for the FTX debtors to recover the gifts, and that the funds will be returned in their entirety. The university clarified that the gifts were primarily intended for pandemic-related prevention and research.
Both Joseph Bankman and Barbara Fried vehemently denied the allegations, calling them “completely false.” CoinDesk, a cryptocurrency news outlet, reached out to Stanford University and representatives of Bankman and Fried for comment but did not receive a response by the time of publication.
The situation surrounding FTX and Sam Bankman-Fried, who founded the now-bankrupt cryptocurrency exchange, has continued to unfold. Bankman-Fried is currently preparing for a trial set to take place next month, even as he remains incarcerated.
In response to FTX’s lawsuit against Bankman and Fried, attorneys for the parents issued a joint statement to CoinDesk, claiming that this legal action was a “dangerous attempt to intimidate Joe and Barbara and undermine the jury process” occurring just days before their child’s trial.
The return of the FTX donations by Stanford University adds another twist to the ongoing saga surrounding FTX and the Bankman-Fried family. As the legal battles continue, the complete truth behind this situation will likely be revealed in the upcoming trial, shedding light on the allegations and their impact on all parties involved.
