Benzinga - Stanford University has announced its intention to give back the substantial sums it accepted from the now-insolvent cryptocurrency platform, FTX (CRYPTO: FTT) and its associated companies.
“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,” stated a university representative, according to Bloomberg.
This development emerged amidst the backdrop of the upcoming Benzinga's Future of Digital Assets conference on Nov. 14.
This decision followed a recent legal action initiated by FTX consultants, who want to retrieve funds due to the platform's clients.
The lawsuit claimed the parents of Sam Bankman-Fried, FTX's co-founder and ex-CEO, misused their sway over the company to amass significant wealth.
Court documents revealed they allegedly gained "millions of dollars" both directly and indirectly.
Bankman-Fried's parents Allan Joseph Bankman and Barbara Fried are legal academics who have lectured at Stanford Law School.
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The litigation stated that between November 2021 and May 2022, Stanford was the beneficiary of donations amounting to approximately $5.5 million from businesses linked to FTX.
The university's representative clarified, “Stanford received gifts from the FTX Foundation and FTX-related companies largely for [COVID-19] pandemic-related prevention and research.”
In a separate statement released earlier, legal representatives for Bankman and Fried refuted the allegations of deceitful transactions by FTX, labeling them as “completely false.”
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