Million

Foundation

<![CDATA[<figure class="image"><img src="https://cimg.co/news/125246/330823/sbf.jpg" alt="" srcset="https://cimg.co/news/125246/330823/responsive-images/sbf___media_library_original_612_408.jpg 612w, https://cimg.co/news/125246/330823/responsive-images/sbf___media_library_original_600_400.jpg 600w, https://cimg.co/news/125246/330823/responsive-images/sbf___media_library_original_300_200.jpg 300w" sizes="100vw" width="612" class="content-img"><figcaption>Source; Getty Images</figcaption></figure>Stanford University is in talks with the attorneys for the beleaguered FTX to return the &ldquo;entirety&rdquo; of gifts that it received from the bankrupt crypto exchange and related entities.The move comes after a <a href="https://cryptonews.com/news/ftx-sues-sam-bankman-frieds-parents-to-recover-millions-in-misappropriated-funds.htm">lawsuit against the parents</a> of its founder and former CEO, Sam Bankman-Fried, who allegedly exploited their influence with the FTX &ldquo;to enrich themselves, directly and indirectly, by millions of dollars.&rdquo;Barbara Fried and Joseph Bankman were both tenured Stanford Law School professors. The lawsuit states that Bankman channeled around $5.5 million in gifts to Stanford University from November 2021 to May 2022.On Tuesday, Bankman and Fried attorneys called the allegations of FTX&rsquo;s fraudulent transfers &ldquo;completely false&rdquo; and &ldquo;a dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their child&rsquo;s trial begins,&rdquo; a CNN report notes.Per a university spokesperson, the school received gifts from the FTX Foundation and FTX-related companies largely for &ldquo;pandemic-related prevention and research.&rdquo;<blockquote>&ldquo;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.&rdquo;</blockquote>Joseph Bankman&rsquo;s <a href="https://law.stanford.edu/directory/joseph-bankman/">Stanford profile</a> notes that he gained wide attention for his work on &ldquo;how government might control the use of tax shelters and has testified before Congress and other legislative bodies on tax compliance problems posed by the cash economy.&rdquo;Barbara Fried, on the other hand, is a <a href="https://law.stanford.edu/directory/barbara-fried/">three-time winner</a> of the John Bingham Hurlbut Award for Excellence in Teaching and has written extensively on questions of distributive justice, in the areas of tax policy, property theory and political theory.<h2 style="text-align:justify;" id="this-is-what-ftx-estate-reveals">This is What FTX Estate Reveals</h2>In December 2022, soon after the FTX exchange went bankrupt which led to worst-case repercussions felt across the crypto industry, Sam said in an interview with the New York Times that his parents &ldquo;weren&rsquo;t involved in any of the relevant parts&rdquo; of the business.&ldquo;None of them were involved in FTX balances or risk management or anything like that,&rdquo; he said at the time.However, in a <a href="https://storage.courtlistener.com/recap/gov.uscourts.deb.188450/gov.uscourts.deb.188450.2642.0.pdf">lawsuit</a> filed Monday, the FTX estate claimed that Bankman sought to distance himself publicly from those donations. He reportedly said, &ldquo;It seems too close to home for me.&rdquo;Stanford understood that Bankman and his family were responsible for the donations and in fact, one university employee described the FTX Group&rsquo;s donations as &ldquo;all of the giving from the Bankman-Frieds.&rdquo;Referring to the $4 million donation from Alameda, the university rep also confirmed whether Stanford &ldquo;should treat that gift like the others listed (ie, being directed by the Bankman-Fried family).&rdquo;FTX is now being run by CEO John J. Ray III, and the allegations from the estate claim that FTX was a &ldquo;family business&rdquo; and Bankman-Fried&rsquo;s parents &ldquo;siphoned millions of dollars&rdquo; from the crypto empire.The filing further said that in November 2021, Bankman allegedly directed FTX employees to transfer $500,000 in donations to Stanford, taken from Paper Bird, another legal entity controlled by his son Sam.&ldquo;We want Paper Bird to do this because it can use the deduction,&rdquo; Joseph Bankman said at the time.
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Stanford University to Return $5.5 Million Worth Gifts Received From Bankrupt FTX

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