Dollars

Millions

Stanford University has announced its decision to return millions of dollars it received from the now-bankrupt crypto exchange, FTX, and its affiliated entities.&nbsp; 
A <a href="https://www.bloomberg.com/news/articles/2023-09-19/stanford-says-will-return-entirety-of-gifts-received-from-ftx#xj4y7vzkg">university spokesperson confirmed in a recent report</a> that they have been in discussions with attorneys representing FTX debtors to recover the donated funds and that the entire amount will be returned. 
<h2 id="b-sam-bankman-fried-s-parents-accused-of-funds-misappropriation-b">Sam Bankman-Fried’s Parents Accused of Funds Misappropriation</h2> 
Stanford University’s decision to return donated funds to the defunct FTX exchange comes when FTX is embroiled in a lawsuit brought by its advisers, seeking to recover funds owed to customers of the now-bankrupt exchange.&nbsp; 
Allan Joseph Bankman and Barbara Fried, both legal scholars and long-time professors at Stanford Law School, have found themselves at the center of controversy due to allegations that they leveraged their influence over FTX to benefit financially.&nbsp; 
According to court papers, <a href="https://storage.courtlistener.com/recap/gov.uscourts.deb.188450/gov.uscourts.deb.188450.2642.0.pdf">the lawsuit claims that Bankman and Fried enriched themselves </a>“directly and indirectly, by millions of dollars.” These allegations have raised concerns about potential conflicts of interest and the ethical behavior of individuals closely associated with Stanford. 
<h2 id="b-the-stanford-ftx-connection-b">The Stanford-FTX Connection</h2> 
The connection between Stanford University and FTX, a crypto exchange founded by Sam Bankman-Fried, dates back several years. One of the key points of contention in this controversy is the financial relationship between Stanford University and FTX-related entities.&nbsp; 
The lawsuit alleges that Stanford received gifts totaling approximately $5.5 million from FTX-related entities between November 2021 and May 2022. According to a Stanford spokesperson, these donations were primarily intended to support pandemic-related prevention and research efforts.&nbsp; 
However, the lawsuit has brought into question whether these funds were obtained ethically and whether they should be returned. 
<h2 id="b-ftx-s-response-and-denial-of-fraudulent-transfers-b">FTX’s Response and Denial of Fraudulent Transfers</h2> 
In response to the allegations made by FTX advisers and the decision by Stanford University to return the donations, attorneys representing Allan Joseph Bankman and Barbara Fried issued a statement calling FTX’s claims of fraudulent transfers “completely false.”&nbsp; 
They have vehemently denied any wrongdoing on their part. Nevertheless, <a href="https://thecoinrise.com/ftx-transfers-token-as-bankruptcy-proceeding-proceeds/">these legal disputes surrounding FTX’s bankruptcy</a> and the alleged exploitation of its influence continue to cast a shadow over the crypto exchange and its affiliated parties. Meanwhile, a recent report has revealed that <a href="https://thecoinrise.com/ftx-founder-to-have-donation-charges-dropped/">Bankman-Fried may see a donation lawsuit dropped</a> from the list of charges against him. 
The post <a rel="nofollow" href="https://thecoinrise.com/stanford-university-to-return-millions-of-dollars-to-ftx-estate/">Stanford University to Return Millions of Dollars to FTX Estate</a> appeared first on <a rel="nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Stanford University to Return Millions of Dollars to FTX Estate

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