FTX had recently filed a lawsuit to reclaim millions of dollars given to Sam Bankman-Fried’s family, Joseph Bankman and Barbara Fried. Subsequently, court documents revealed that at least $5.5 million had been donated to Stanford University.
In the aftermath of the events, a spokesperson for Stanford University, as reported by Bloomberg, announced its intention to return the millions of dollars it received from the bankrupt cryptocurrency exchange FTX following discussions with the attorneys representing FTX creditors.
Source of Payments and Allegations
FTX advisors claimed that FTX’s CEO, Sam Bankman-Fried, had donated at least $5.5 million to Stanford University. Subsequently, FTX and related entities sent millions of dollars in “gifts” to the university. However, these donations sparked significant controversy in the public eye following the FTX legal proceedings.
Nevertheless, Stanford University argued that a significant portion of the donations it received was used for pandemic-related prevention and research purposes. However, these explanations couldn’t mitigate the growing public pressure concerning the source and ethics of the donations, leading the university to announce its decision to return all donations received from FTX.