Stanford University has announced its decision to return substantial cryptocurrency donations it received from the now-defunct cryptocurrency exchange, FTX. This is according to a Bloomberg report.
The Background and The Purpose of Donations
Stanford had been the recipient of a generous $5.5 million in donations from FTX-related entities. This was between November 2021 and May 2022. The university’s spokesperson, in an email statement dated September 19, stated their intention clearly:
“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.”
It’s crucial to understand that Stanford’s acceptance of these funds was primarily for pandemic-related prevention and research. The gifts had come from the FTX Foundation and FTX-related companies, reflecting their commitment to supporting important causes.
Ties to FTX’s Former CEO and Legal Troubles for His Parents
The plot thickens as we learn about the familial connections between Stanford and Sam Bankman-Fried (SBF), the former CEO of FTX. Both of SBF’s parents, Allan Joseph Bankman and Barbara Fried, are legal scholars who have contributed to Stanford’s law school.
In a surprising turn of events, SBF’s parents now face allegations of misappropriating funds from the crypto exchange. FTX debtors filed a lawsuit on September 18, accusing them of enriching themselves, directly and indirectly, by millions of dollars through their involvement with the exchange.
Court documents suggest that Bankman raised concerns about his annual salary, which was set at $200,000 but was allegedly expecting $1 million.
SBF’s Legal Battle
As the legal battle unfolds, SBF’s lawyers argued on September 19 for his early release from jail. This request was made in order to prepare for his upcoming trial scheduled to commence in October.
However, the judges seemed unswayed by SBF’s legal team’s arguments, particularly regarding his First Amendment rights. These cited concerns about intimidation tactics used against a witness, Caroline Ellison, former CEO of Alameda Research.
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