Complete News World

Stanford University has received multi-million dollar donations from FTX.  Now you have to return them

Stanford University has received multi-million dollar donations from FTX. Now you have to return them

FTX Group’s collapse is still being felt, nearly a year after the once-popular exchange filed for bankruptcy protection under the U.S. Bankruptcy Code. More than ten months after that decision, the FTX scandal claimed an unexpected victim: Stanford University in California.

A poisoned gift from FTX

Later, this is what Stanford University received at that time com. cryptoexgange FTX and people connected to the platform. Without specifying amounts, dates, or going into detail, U.C a favour To social media Who has received gifts from the FTX Foundation and related companies.

Stanford guarantees that a “significant portion” of the contributions went to “prevention and research related to the epidemic.” And now the officials Guarantee that they will return the money.

But why this decision from Stanford University?

To understand it, you need to understand the context. The university's decision to do away with the "donations" comes in the wake of a lawsuit against the parents of FTX's founder, who claim the California foundation received millions of dollars in donations.

The fact that these funds went to one institution in North America and not to another institution was not a mere coincidence. Bankman Freed's father and mother, Joe Bankman and Barbara Freed, now retired, They have connections to Stanford University as law professors.

FTX's lawsuit against the parents of its former CEO provides some interesting details and numbers. The text claims that Bankman once gave More than $5.5 million in FTX donations to Stanford UniversityThe institution where he worked. The complaint seeks to recover funds “fraudulently transferred and misappropriated” by Joe Bankman and Barbara Freed. In the words of FTX's attorneys, they are accused of embezzling "millions of dollars from the FTX group for their own personal benefit and pet reasons."

See also  Banque Centrale Populaire cuts interest rates by up to 90% on the basic offer of term deposits

The lawsuit is scathing, suggesting that by transferring more than $5.5 million from FTX to Stanford, Bankman sought to "gain favors and enrich his employer" at the expense of the group, which ended up bankrupt. The accusation is serious enough that those in charge of the California institution decided to speak out. And they do it To send two messages.

First, the money they received was “largely allocated to prevention and research related to the epidemic.” The second message, and this is probably the most relevant, It is that they are determined to pay it back.

We have been in discussions with FTX's debtor attorneys to redeem these offers and will provide a full refund.


His lawyers describe the accusations as completely false

What about Bankman Fried's parents? First of all, it is important to clarify that, to date, neither Bankman nor Fried have been criminally charged with any wrongdoing. But his lawyers were quick to issue another statement They described the accusations as "completely false.".

Lawyers go further, calling the content a "dangerous attempt to intimidate" the former FTX CEO's parents "and harm the jury process just days before their son's trial begins." The lawsuit alleges that Bankman and Fried accepted a gift of approximately $10 million and a luxury estate worth $16.4 million in the Bahamas from FTX.

And now? If nothing changes, Sam Bankman-Fried will stand trial on October 3, charged with fraud, following the collapse of the FTX exchange, almost a year ago, now run by restructuring specialist John Ray.

See also  Urgent, important and accessory - Human Resources

Read also…