A Stanford University spokesperson said in an emailed statement that the university plans to return millions of dollars received from bankrupt cryptocurrency exchange FTX and related entities.
“We have been in discussions with attorneys for the FTX debtors to recover these gifts and we will refund the funds in full,” a university spokesperson said in an emailed statement on Tuesday.
The news follows litigation FTX Advisors seeks to recover funds owed to clients of the bankrupt exchange, accusing the parents of co-founder and former CEO Sam Bankman-Fried of using their influence over FTX to “directly or indirectly enrich themselves millions of dollars.” , according to court documents.
Alan Joseph Bankman and Barbara Fried are legal scholars who teach at Stanford University Law School. Among other things, the lawsuit alleges that Stanford University received gifts totaling approximately $5.5 million from FTX-related entities between November 2021 and May 2022.
“Gifts received by Stanford University from the FTX Foundation and FTX-related companies are primarily used for epidemic-related prevention and research,” a Stanford spokesperson said in a statement.
Earlier Tuesday, lawyers for Bankman and Fried called FTX’s allegations of fraudulent transfers “completely false” in a statement.
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