Stanford to Return Millions in Crypto Donations from FTX

The California-based Stanford University said it plans to return all funds it received from the now-defunct cryptocurrency exchange FTX, according to a report from Bloomberg.

Stanford received a total of $5.5 million in gifts from FTX-related entities between November 2021 and May 2022. In an email statement on Sept. 19, a university 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 statement from Stanford clarified that it "received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research."

Both parents of former FTX CEO Sam "SBF" Bankman-Fried, Alan Bankman and Barbara Fried, are legal scholars who have taught at Stanford Law School.

Stanford's renouncement of monetary support from FTX comes as SBF's parents are accused of stealing millions from the crypto exchange.

FTX debtors launched a lawsuit on Sept. 18 against the two, alleging they misappropriated funds via their involvement with the exchange to "enrich themselves, directly and indirectly, by millions of dollars," according to the court papers. Bankman has been alleged to have been a "de facto officer" at FTX Group.

On Sept. 19, SBF’s lawyers argued in front of a three-judge panel for early release from jail in order to prepare for his upcoming trial scheduled to begin in October.

(Source: CoinTelegraph)