{"id":158952,"date":"2023-09-20T02:36:12","date_gmt":"2023-09-19T21:06:12","guid":{"rendered":"https:\/\/dripp.zone\/news\/stanford-to-refund-5-5m-back-to-ftx-crypto-news\/"},"modified":"2023-09-20T02:36:15","modified_gmt":"2023-09-19T21:06:15","slug":"stanford-to-refund-5-5m-back-to-ftx-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/stanford-to-refund-5-5m-back-to-ftx-crypto-news\/","title":{"rendered":"Stanford to Refund $5.5M Back to FTX – Crypto News"},"content":{"rendered":"

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Based on allegations that Joseph\u00a0Bankman and Barbara Fried, the parents of\u00a0FTX founder, Sam Bankman-Fried channeled some of the firm\u2019s funds to Stanford University where they are serving as Law Professors, the tertiary institution has hinted at plans to <\/span>return<\/span><\/a> the donations.\u00a0<\/span><\/p>\n

Stanford to Refund all Cash Gifts Received<\/strong><\/h2>\n

According to a Stanford spokesperson, the University is still in discussion with attorneys on how to go about the refund. Stanford University plans to return the funds to FTX Debtors in its entirety.\u00a0<\/span><\/p>\n

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Without mincing words, the spokesperson confirmed that the University received gifts from the FTX Foundation and FTX-related companies while also citing that they were for pandemic-related prevention and research.<\/span><\/p>\n

Since FTX\u2019s implosion in November 2022 and its bankruptcy filing protection, FTX Debtors represented by some advisers have been trying to recover their funds. Most of these customers\u2019 deposits were given out as donations and gifts to several entities including political parties.\u00a0<\/span><\/p>\n

In the case of the tertiary institution, the <\/span>parents<\/span><\/a> of Sam Bankman-Fried misused their influence over FTX to <\/span>enrich<\/span><\/a> themselves, directly and indirectly, by redirecting millions of dollars. Recent filing shows that between November 2021 and May 2022, Stanford received gifts of up to $5.5 million from FTX-related entities.\u00a0<\/span><\/p>\n

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In addition to giving FTX customers funds for their \u201cpet cause\u201d at the University, Bankman and Fried also received a 30,000-square-foot home in the Bahamas valued at $16.4 million and a $10 million cash gift from their son.<\/span><\/p>\n

SBF\u2019s Donations Dubbed Fraudulent<\/strong><\/h2>\n

However, court filings alleged that the donations to the University \u201cdid not benefit the FTX Group, and instead amounted to naked self-dealing by Bankman, who\u00a0sought to curry favor with and enrich his employer at the FTX Group\u2019s expense.\u201d\u00a0<\/span><\/p>\n

This may not be the case for other donations that SBF made, especially those made to <\/span>political affiliations<\/span><\/a>. Donations to political parties were tagged as \u201cfraudulent transfers\u201d in a lawsuit and would therefore be returned.<\/span><\/p>\n

Just like Stanford University, the Metropolitan Museum of Art also received millions of dollars in donations from the crypto exchange. During the end of Q2 2023, the museum finally decided to <\/span>return<\/span><\/a> $550,000 in donations as a result of \u201cgood faith, arm\u2019s length negotiations\u201d on behalf of both parties involved.<\/span><\/p>\n

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