Stanford University returning all gifts from FTX, spokesperson says

Stanford University confirmed Wednesday that it received gifts of funds from entities associated with FTX and is working to return all funds received from the bankrupt cryptocurrency exchange and its affiliates.

The move comes as FTX’s current leadership is suing the parents of co-founder and former CEO Sam Bankman Fried, a longtime Stanford University law professor, to recover their funds. This was done after he claimed to have placed millions of dollars in orders from his son’s former legal entity to financial institutions. University.

Stanford University in Palo Alto, California is shown on September 16, 2023. The University is committed to returning all gifts received from FTX and its affiliates. (David Madison/Getty Images)

“Stanford University has received donations from the FTX Foundation and FTX-affiliated companies primarily for pandemic-related prevention and research purposes,” a Stanford University spokesperson said in a statement. “We are consulting with attorneys on behalf of FTX debtors to recover these gifts and intend to refund the funds in full.”

Debtors of FTX and sister hedge fund Alameda Research filed a complaint in federal court on Monday. bankruptcy courtMr. Bankman-Fried’s father, Joseph Bankman, and mother, Barbara Freed, “abused their access and influence within the FTX companies to directly and indirectly amass millions of dollars in wealth.” , accused the company of exploiting the debtors at the expense of the debtors.

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The plaintiffs say Mr. Bankman directed him to donate approximately $5.5 million to his then-employer, Stanford University, and that Mr. Freed donated tens of millions of dollars from his son’s company to MTG, a political action committee he co-founded. He claims to have succeeded in doing so.

Joseph Bankman and Barbara Freed appear in court

Joseph Bankman (second from left) and Barbara Freed, parents of former FTX CEO Sam Bankman Freed, after their son’s bail hearing in New York City on August 11, 2023. set off. (Fatih Aktas/Anadolu Agency/Getty Images)

The FTX debtors also allege that Bankman and Freed personally received $10 million in gifts from their son in early 2022, the source of which was in Alameda, and $16.4 million in the Bahamas paid for with FTX Trading funds. claims to have received the title deed to the property.

Bankman and Fried’s attorneys, Sean Hecker and Michael Tremonte, said in a joint statement that FTX’s claims are “completely false” and that the new lawsuit is a waste of money that could be returned to FTX’s customers. said.

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“This is a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their children’s trial begins,” Hecker and Tremonte said.

Sam Bankman Freed leaves federal court

Sam Bankman Freed (John Minchillo/File/AP Newsroom)

Bankman Fried has been charged with several federal crimes related to the collapse of his crypto empire, including securities fraud and looting the platform for personal gain. The former CEO has pleaded not guilty to all charges and is currently in prison pending trial, which is scheduled to begin next month.


Neither Mr. Bankman nor Mr. Freed have been charged with a crime.

Reuters contributed to this report.

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