A spokesperson for Stanford University said in an emailed statement that the university aims to return millions of dollars and related entities that were received from bankrupt crypto exchange FTX.
A spokesperson said, “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.”
The news follows a lawsuit filed by FTX advisers to recover money owed to bankrupt exchange customers, in which it was claimed that Sam Bankman-Fried’s parents used their influence over FTX to “enrich themselves, directly and indirectly, by millions of dollars.”
Both parents of Sam Bankman-Fried, Joseph Bankman and Barbara Fried, are legal scholars and longtime professors at Stanford Law School. In the lawsuit, it is claimed that from November 2021 to May 2022, Stanford received gifts from FTX-affiliated companies totaling about $5.5 million.
In a statement, a spokesperson said, “Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research.”
Earlier, Bankman and Fried’s attorneys deemed the allegations of fraudulent transfers made by FTX to be “completely false.” In response to the university’s statement, a representative for Bankman-Fried declined to make any extra comments.