Stanford University will return $5.5 million in donations from FTX Group, the bankrupt cryptocurrency exchange founded by Sam Bankman-Fried, who faces multiple counts of fraud and money laundering, Fortune reported.
Earlier this week FTX filed a lawsuit against Bankman-Fried’s parents, Stanford law professors Joseph Bankman and Barbara Fried, accusing them of using their “access and influence within the FTX enterprise to enrich themselves.”
According to the lawsuit, in addition to receiving cash gifts and a $16.4 million house in the Bahamas, Bankman “used his status as an insider to funnel vast sums of FTX Group money to his chosen causes, including his employer, Stanford University.”
“Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research,” a Stanford spokesperson told Blockworks, a crypto news site. “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.”