Stanford College plans to return hundreds of thousands of {dollars} it acquired from the now-bankrupt crypto trade FTX and its affiliate firms, based on Bloomberg,
This choice comes amidst a lawsuit from FTX advisers searching for to reclaim funds owed to the trade’s clients. The lawsuit alleges that Allan Joseph Bankman and Barbara Fried, mother and father of FTX co-founder and former CEO Sam Bankman-Fried, exploited their affect over FTX to straight and not directly enrich themselves with hundreds of thousands of {dollars}. Bankman and Fried are authorized students and longtime professors at Stanford Legislation Faculty.
The lawsuit explicitly alleges that Stanford acquired presents totaling roughly $5.5 million from FTX-related entities between Nov. 2021 and Could 2022. A college spokesperson informed Bloomberg, “Stanford acquired presents from the FTX Basis and FTX-related firms largely for pandemic-related prevention and analysis.”
Authorized representatives for Bankman and Fried firmly refute the allegations, branding them as “utterly false.” Particularly, Sean Hecker, counsel for Joe Bankman, and Michael Tremonte, counsel for Barbara Fried, informed CryptoSlate that
“These claims are utterly false. Mr. Ray and his large staff of attorneys, who’re collectively operating up numerous hundreds of thousands of {dollars} in charges whereas returning comparatively little to FTX shoppers, know higher.”
Additional, they acknowledged that the swimsuit was “a harmful try and intimidate” SBF’s mother and father and “undermine the jury course of simply days earlier than their youngster’s trial begins.”
Stanford College’s transfer to return the donated funds talked about within the swimsuit represents an try to keep up moral requirements amidst the tumultuous panorama.
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