Stanford University will reportedly return millions of dollars in gifts it received from bankrupt crypto exchange platform FTX.
According to a new report from Bloomberg, a Stanford spokesperson says the California university will refund the donated money in full so that those affected by FTX’s demise can get their money back.
As the spokesperson stated in an email to Bloomberg:
“We have been in discussions with lawyers for the FTX debtors to recover these gifts and we will refund the money in full.”
The spokesperson said most of the donations were made for “pandemic-related prevention and research” from FTX or FTX-related entities.
The news comes after FTX’s estate filed a lawsuit against the parents of former CEO Sam Bankman-Fried, both lawyers and professors at Stanford University, claiming they used their influence to “injure themselves, directly and indirectly, out of millions to enrich. of dollars.”
FTX initially filed for bankruptcy in November 2022. Its disgraced founder, Bankman-Fried, is currently awaiting trial, which is set to start in October. He is accused of defrauding investors and mishandling billions of dollars in client funds. If convicted, he faces decades behind bars.
He is also accused of using $100 million in stolen money to make illegal campaign donations to both Democrats and Republicans before the 2022 midterm elections, while evading contribution limits.
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