- The failed crypto exchange, FTX, made huge illegal donations to Stanford University. So, the total amount is around $5.5 million.
- There’s currently a lawsuit implicating the university to return all the donations.
Stanford University is one of the most prominent universities in the world. However, they are currently in a mess after receiving donations from the former CEO of FTX.
Stanford University to Return Gifts From FTX
- Stanford University is now among the long list of entities involving themselves in the FTX case. So, before the collapse of FTX, the failed crypto exchange made several donations to this university. According to the spokesperson of FTX before the collapse, many of these gifts were for charity. So, more details show that these cash gifts were for issues relating to the Coronavirus pandemic.
- Stanford University is very fast with their collaboration to return all the gifts from FTX. So, their representative already confirmed talks with the attorneys of FTX to return all the monetary funds from the failed crypto exchange. But how did Stanford University’s involvement with the FTX case come about?
Sam Bankman-Fried Parents Connection in the Case
- It was a lawsuit involving the parents of Sam Bankman-Fried that made Stanford University have an involvement in the FTX case. So, the parents of Sam Bankman-Fried are both professors at the university. There was a lawsuit made on Monday by the FTX Bankruptcy Estate against Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried. So, this lawsuit was basically an accusation of the parent’s involvement in the FTX case.
- According to the lawsuit, the parents of Sam Bankman-Fried made good use of their influential roles within the FTX enterprise for personal gain. So, there were also accusations of channeling millions of dollars to various entities, family, and friends. The name of Stanford University came up through these allegations from the lawsuit. So, the lawsuit alleged that the father of SBF, Joseph Bankman, made some illegal donations amounting to around $5.5 million from FTX Group to his employer, Stanford University, from November 2021 to May 2022.
More Details About the Donations to Stanford University
- More detail shows a decent breakdown of how the parents of Sam Bankman-Fried made these donations to their university. For instance, on November 9, 2021, the parents of Sam Bankman-Fried made some inquiries from FTX and Alameda Research, leading to a donation of around $500k.
- In another scenario, SBF had conversations to donate around $4 million to Stanford University. So, the reason behind this particular donation was to ensure “pandemic preparedness” at the university. In March 2022, there was also another discussion from SBF to donate around $1.5 million to the university. So, donations like this are what the attorneys of FTX are asking for.
Conclusion
The prestigious Stanford University is in a mess due to its involvement with the former CEO of FTX, Sam Bankman-Fried, and his family. So, the university will have to return donations made by FTX.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
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