Stanford University has announced its decision to return purportedly multi-million-dollar “gifts” it received from FTX amidst allegations involving the parents of Sam Bankman-Fried, as revealed in a recent Bloomberg report.
Joseph Bankman and Barbara Fried, both esteemed professors at Stanford Law School, find themselves embroiled in a legal battle as the FTX Group files a lawsuit against them, accusing the pair of misappropriating funds amounting to millions, including a substantial $5.5 million in donations intended for Stanford University.
A spokesperson for Stanford University confirmed their intention, stating, “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.” The spokesperson also explained that these gifts were initially received from the FTX Foundation and FTX-related entities, primarily earmarked for pandemic-related research and prevention efforts.
In contrast, Joseph Bankman and Barbara Fried vehemently deny all allegations, labeling them “completely false.” Their son, Sam Bankman-Fried, founder and former CEO of the now-bankrupt FTX cryptocurrency exchange, is preparing for an impending trial, all while incarcerated.
In response to FTX’s lawsuit, attorneys representing the parents issued a joint statement to CoinDesk, denouncing it as “a dangerous attempt to intimidate Joe and Barbara and undermine the jury process, just days before their child’s trial begins.”
Despite the mounting controversy, Stanford University and representatives of Joseph Bankman and Barbara Fried have remained tight-lipped, declining to provide comment when approached by CoinDesk, a decision communicated after regular business hours in the United States.