Stanford will return $5.5 million in donations received from FTX

Stanford University, where the parents of FTX and Alameda Research founder Sam Bankman-Fried (SBF) worked, will return $5.5 million in donations received from organizations, Bloomberg writes.

Earlier, the agency’s journalists pointed out the decisive role of parents in the development of the SBF business. One of the interlocutors then called Joseph Bankman the actual founding father of the companies.

Both had distinguished careers long before Bankman-Fried’s alleged fraud, serving for more than three decades at the university’s law school.

“We will return the funds in full” – said a representative of the institution.

The comment comes amid a lawsuit by the current FTX team against SBF’s parents. The exchange intends to recover “millions of dollars” worth of allegedly misappropriated funds and property to add to the bankruptcy estate.

According to the statement, the defendants used their influence in the company for personal gain. The lawsuit does not specify the total amount of claims, but includes real estate received by the parents in the Bahamas worth $18 million, donations to Stanford University and other payments and transfers of property.

“Stanford has received donations from the FTX Foundation and exchange-affiliated companies primarily for pandemic-related prevention and research,” a university spokesperson said in a statement.

In July, lawyers demanded the return of $71 million from charitable units associated with the exchange. Prior to this, the Metropolitan Museum of Art in New York agreed to return $550,000 received from the exchange as a donation.

Let’s remember that lawyers for Bankman-Fried’s parents rejected the claims.

In a March presentation, exchange representatives estimated the total deficit of funds to cover creditors’ claims at $8.7 billion, of which about $1.6 billion is in Bitcoin. In June, new management at FTX said it had returned $7 billion in liquid assets.

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