Stanford University Returning $5.5 Million in Donations to FTX
As legal pressure continues escalating on the collapsed Bahamian crypto exchange FTX, the multiple indictments have forced Stanford University to reconsider returning the donation received. In a Monday, September 19 update, the university revealed plans to return all gifts worth millions of dollars received from FTX.
The report indicated that the learning institution initially received measurable gifts from the FTX Foundation. The donation aimed at supporting the institution to conduct an extensive study on the prevention measures of the COVID-19 pandemic.
Stanford University to Return FTX Donations
A statement conveyed by a spokesperson from the university admitted that for the past few months, the institution has been discussing with the FTX legal team ways to return the donations. In a recent engagement, the university agreed to return the whole amount it received.
The decision to return the donation arose from the lawsuit filed by the FTX bankruptcy estate. Addressing the jury at the Delaware district court, the complainant accused Sam Bankman Fried’s parents, Joseph Bankman and Barbara Fried, of misappropriating funds and orchestrating fraudulent transfers of assets worth millions.
The 63-page filing claimed that Bankman Fried’s parents who worked at Stanford Law School were engaged in misuse of funds. The lawsuit revealed that the two engaged in fraudulent schemes for personal gains.
The complainant blamed the two for channeling assets worth millions to friends and relatives. Subsequently, Bankman Fried’s parents were accused of illegally transferring approximately $5.5 million to Stanford University.
Sam Bankman Fried Parents Involved in Misappropriation of Funds
The court document illustrated that the donations channeled by the Bankman and wife detached from the FTX’s primary objective. Particularly the complainant claimed that the donation aimed at enriching the Bankman Fried family.
A scrutiny of the process involved in the donation reimbursement indicated the two implemented “various creative means” to wire funds to Stanford. The couples were accused of using multiple FTX affiliate companies.
The court document showed that in November 2021, the father requested officials from Alameda Research and FTX to offer financial support to Stanford. Bankman was alleged to have sought donations amounting to $500,000.
Under the request, Bankman demanded to know the financial capability of Paper Bird. Preferably, the father urged the FTX group to use Paper Bird since it has deduction feature suitable for channeling donations.
In honor of the Bankman’s request, FTX Trading created a PaperBird account, and a deposit of $1.5 million was made. At that time, transaction details revealed that $750000 was transferred to Stanford.
In February 2022, Bankman approached the FTX Foundation, seeking financial aid to support the university in research. In his proposal, Bankman requested the crypto exchange nonprofit arm to support the institution with $4 million.
Stanford University Receives Donations from FTX
He stated the need to research “Pandemic Preparedness” and presented the proposal to the FTX Foundation project officer. After reviewing the proposal, the project officer authorized the processing of the donations through Bitcoin transcations.
The report shows that the FTX account transferred the funds to the Stanford University School of Medicine. Later in March, the Bankman made an official request to the FTX Foundation CEO and Project officer.
In this report, the father of the FTX ex boss requested a donation amounting to $1.5 million. Afterward, Bankman requested Alameda and FTX Trading to support the institution during the Stanford Blockchain Conference.
The report indicates that SBF’s father requested $ 10,000 to support the event. However based on the needs of hosting the event, the $ 10,000 received from the crypto exchange was considered insufficient.
He later approached FTX.US seeking additional funding. During the Monday court hearing, Bankman was accused of being aware of the donations received from FTX Group.
The court documents portrayed that Bankman was not involved in all the contributions transferred to the institution. His involvement in donations contradicts with a statement issued by his son last year. Addressing the New York Times, Bankman Fried denied that his father and mother were not involved in any activity undertaken by the collapsed crypto exchange.
Editorial credit: jejim / Shutterstock.com
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