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Stanford University said it will return the gifts received from the bankrupt FTX crypto exchange "in full", after a Lawsuit Against Founder Sam Bankman-Fried's Parents He alleged that the school received millions of dollars in donations.
The school said it received gifts from the FTX Foundation and its related companies โfor prevention and research related to the pandemic,โ a Stanford spokesperson said.
"We have been in discussions with attorneys for the FTX debtors to recover these gifts and will return the funds in full," the spokesperson said.
FTX is suing Sam Bankman-Fried's parents, both tenured Stanford Law professors, for allegedly funneling millions of dollars of company funds to "enrich themselves."
The lawsuit aims to recover funds that the company claims were "fraudulently transferred and misappropriated" by Joe Bankman and Barbara Fried.
Bankman donated more than $5.5 million in donations from FTX Group to his employer, Stanford University, the lawsuit alleges.
The lawsuit alleges that the two knew โor ignored red flagsโ indicating that their son and his business partners were โorchestrating a vast fraudulent scheme.โ
Lawyers representing Bankman and Fried issued a statement calling the lawsuit's claims โcompletely falseโ and โa dangerous attempt to intimidate Joe and Barbara and undermine the jury process just days before their trial is set to begin.โ son".
Neither Bankman nor Fried have been criminally charged with wrongdoing.
FTX went bankrupt last November when questions about its finances rocked crypto markets and caused a sudden and massive reduction in customer funds. A federal investigation is probing the company in what prosecutors have called one of the largest financial frauds in U.S. history.
Bankman-Fried, who is 31, has pleaded not guilty to multiple charges of fraud and conspiracy and is scheduled to go to trial on October 3.
