Key Points:
- Stanford University to return ‘gifts’ allegedly worth millions linked to FTX.
- FTX lawsuit accuses professors Joseph Bankman and Barbara Fried of misappropriation.
- Legal battle ensues as parents deny allegations; Sam Bankman-Fried’s trial looms.
In a recent development, Stanford University has decided to return what were originally termed as “gifts” from FTX, a move reportedly associated with the alleged involvement of Sam Bankman-Fried’s parents. As reported by Bloomberg, these gifts are purportedly valued at millions of dollars.
Joseph Bankman and Barbara Fried, both professors at Stanford Law School, have found themselves entangled in a lawsuit initiated by the FTX Group on Monday. The lawsuit alleges misappropriation of substantial sums, including a notable $5.5 million in donations intended for Stanford University.
A spokesperson for Stanford University stated, “We have been in discussions with attorneys representing the FTX debtors to recover these donations, and we are committed to returning the entire amount. Stanford initially received contributions from the FTX Foundation and affiliated FTX entities, primarily designated for pandemic-related prevention and research.”
Denying all allegations, the parents have adamantly labeled them as “completely false.” Meanwhile, their son, Sam Bankman-Fried, the founder and former CEO of the now-bankrupt FTX cryptocurrency exchange, is currently preparing for an upcoming trial, while incarcerated.
In response to the lawsuit filed by FTX, attorneys representing the parents released a joint statement to CoinDesk, asserting, “This is a concerning attempt to intimidate Joe and Barbara and undermine the judicial process, mere days prior to the commencement of their child’s trial.”
As of the time of reporting, neither Stanford University nor representatives of Joseph Bankman and Barbara Fried have provided comments in response to CoinDesk’s inquiries, which were sent after the close of business hours in the United States.
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