Stanford University to Return $5.5M Donations Made by FTX

• FTX Trading sued SBF’s parents in an effort to recover financial damages.
• The court earlier revoked SBF’s bail on charges of witness tampering, and he is now in prison.

According to a Bloomberg report, the Stanford University in California has said that it intends to refund all funds it received from the bankrupt crypto exchange FTX. Between November 2021 and May 2022, FTX-affiliated firms gave Stanford a total of $5.5 million.

A university representative stated:

“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.”

Moreover, Stanford’s statement made clear that the FTX Foundation and FTX-affiliated enterprises provided funding for pandemic preparedness and research.

Recovery Mode

Sam Bankman-Fried (SBF), the ex-CEO of FTX, is the son of Alan Bankman and Barbara Fried, both of whom taught law at Stanford Law School. Also, Stanford has decided to no longer accept funding from FTX after allegations surfaced that SBF’s parents had stolen millions from the cryptocurrency exchange.

On September 18th, FTX Trading sued SBF’s parents in an effort to recover financial damages caused by withdrawals made by the couple from FTX Trading and its affiliates. Also, FTX is asking for their assets to be restored to its creditors and for them to be held legally liable for their acts, claiming they had gained illicit funds by their participation with the exchange.

SBF’s trial is set to begin in October, therefore on September 19 his attorneys argued before a three-judge panel for his early release from prison. The court earlier revoked SBF’s bail on charges of witness tampering, and he is now in prison. 

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