Stanford to Refund $5.5M Again to FTX

Primarily based on allegations that Joseph Bankman and Barbara Fried, the dad and mom of FTX founder, Sam Bankman-Fried channeled a number of the agency’s funds to Stanford College the place they’re serving as Regulation Professors, the tertiary establishment has hinted at plans to return the donations. 

Stanford to Refund all Money Items Obtained

In response to a Stanford spokesperson, the College remains to be in dialogue with attorneys on tips on how to go in regards to the refund. Stanford College plans to return the funds to FTX Debtors in its entirety. 

With out mincing phrases, the spokesperson confirmed that the College obtained presents from the FTX Basis and FTX-related corporations whereas additionally citing that they have been for pandemic-related prevention and analysis.

Since FTX’s implosion in November 2022 and its chapter submitting safety, FTX Debtors represented by some advisers have been attempting to get well their funds. Most of those prospects’ deposits got out as donations and presents to a number of entities together with political events. 

Within the case of the tertiary establishment, the dad and mom of Sam Bankman-Fried misused their affect over FTX to enrich themselves, instantly and not directly, by redirecting thousands and thousands of {dollars}. Current submitting reveals that between November 2021 and Might 2022, Stanford obtained presents of as much as $5.5 million from FTX-related entities. 

Along with giving FTX prospects funds for his or her “pet trigger” on the College, Bankman and Fried additionally obtained a 30,000-square-foot dwelling within the Bahamas valued at $16.4 million and a $10 million money reward from their son.

SBF’s Donations Dubbed Fraudulent

Nevertheless, court docket filings alleged that the donations to the College “didn’t profit the FTX Group, and as a substitute amounted to bare self-dealing by Bankman, who sought to curry favor with and enrich his employer on the FTX Group’s expense.” 

This is probably not the case for different donations that SBF made, particularly these made to political affiliations. Donations to political events have been tagged as “fraudulent transfers” in a lawsuit and would subsequently be returned.

Similar to Stanford College, the Metropolitan Museum of Artwork additionally obtained thousands and thousands of {dollars} in donations from the crypto trade. Throughout the finish of Q2 2023, the museum lastly determined to return $550,000 in donations because of “good religion, arm’s size negotiations” on behalf of each events concerned.