Stanford to Return $5.5 Million in Cash Gift Received From FTX

Jimmy Aki
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Stanford University has announced that it intends to return the ‘entirety’ of funds it received from the now-defunct cryptocurrency exchange, FTX.

$5.5M Cash Donation for Pandemic-Related Prevention and Research to Be Coughed-Up

In an exclusive report by Bloomberg, Stanford’s spokesperson revealed via email on September 19 that the University received approximately $5.5 million in cash gifts from the FTX foundation. The donation was designated for pandemic-related prevention and research purposes.

The news of Standford’s involvement in FTX’s misappropriated funds comes on the heels of legal action filed against it and the parents of co-founder Sam Bankman-Fried (SBF) on September 18.

In more than two pages of the filing, Sam Bankman-Fried (SBF) used Paper Bird, one of the entities under FTX, to siphon $500,0000 to the University.

Months later, $4 million was transferred from the company’s charitable foundation to an anonymous “Stanford Professor” and the “Standford School of Medicine for the Fund for Pandemic Preparedness.”

The lawsuit claimed Alameda Research, another registered entity of FTX, subsequently sold about $4 million in Bitcoin (BTC) to fund the donation.

Furthermore, FTX donated $500,000 to Stanford Law School shortly before its collapse. These donations were received between November 2021 and May 2022.

The spokesperson emphasized that the University remains committed to collaborating with attorneys representing the bankrupt exchange to recover every cent of the funds.

SBF’s Parents Slams FTX’s Attorney Accusation as “Completely False”

Following the collapse and Chapter 11 Bankruptcy of the FTX exchange on November 11, 2022, John Jay Ray III was appointed to recover up to $8.7 billion in misappropriated funds.

So far, the new FTX management has made up a recovery of $7 billion of liquidated assets, with approximately $1.7 billion trailing.

However, it appears the parents of SBF, namely Allan Joseph Bankman and Barbara Fried, are the next funds recovery hurdle. FTX attorneys cited they both profited from their son’s investment scheme with intent or ignorance.

SBF gifted his parents $10 million and a luxurious real estate worth $16.4 million. The lawsuit alleged both parents either knew or ignored the red flags that their son was in a deceptive scheme.

However, attorneys representing the defendants have now issued a statement that asserts all accusations are “completely false.”

FTX’s legal actions have been seen by some as an attempt to exert pressure on SBF’s parents and potentially influence the jury’s proceedings shortly before their child’s trial commenced.

Sam Bankman-Fried has pleaded not guilty to multiple conspiracy and fraud charges. With his trial scheduled for October 3, legal experts believe more investment schemes and secrets related to missing funds will be unraveled.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.