FTX News: Stanford to Refund $5.5M Back to FTX
Based on allegations that Joseph Bankman and Barbara Fried, the parents of FTX founder, Sam Bankman-Fried channeled some of the firm’s funds to Stanford University where they are serving as Law Professors, the tertiary institution has hinted at plans to return the donations.
Stanford to Refund all Cash Gifts Received
According to a Stanford spokesperson, the University is still in discussion with attorneys on how to go about the refund. Stanford University plans to return the funds to FTX Debtors in its entirety.
Without mincing words, the spokesperson confirmed that the University received gifts from the FTX Foundation and FTX-related companies while also citing that they were for pandemic-related prevention and research.
Since FTX’s implosion in November 2022 and its bankruptcy filing protection, FTX Debtors represented by some advisers have been trying to recover their funds. Most of these customers’ deposits were given out as donations and gifts to several entities including political parties.
In the case of the tertiary institution, the parents of Sam Bankman-Fried misused their influence over FTX to enrich themselves, directly and indirectly, by redirecting millions of dollars. Recent filing shows that between November 2021 and May 2022, Stanford received gifts of up to $5.5 million from FTX-related entities.
In addition to giving FTX customers funds for their “pet cause” at the University, Bankman and Fried also received a 30,000-square-foot home in the Bahamas valued at $16.4 million and a $10 million cash gift from their son.
SBF’s Donations Dubbed Fraudulent
However, court filings alleged that the donations to the University “did not benefit the FTX Group, and instead amounted to naked self-dealing by Bankman, who sought to curry favor with and enrich his employer at the FTX Group’s expense.”
This may not be the case for other donations that SBF made, especially those made to political affiliations. Donations to political parties were tagged as “fraudulent transfers” in a lawsuit and would therefore be returned.
Just like Stanford University, the Metropolitan Museum of Art also received millions of dollars in donations from the crypto exchange. During the end of Q2 2023, the museum finally decided to return $550,000 in donations as a result of “good faith, arm’s length negotiations” on behalf of both parties involved.
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