Stanford University, where the parents of FTX and Alameda Research founder Sam Bankman-Fried (SBF) were employed, has decided to return $5.5 million in donations that had been received from organizations and linked to SBF, according to Bloomberg.
Previous reports from the media outlet highlighted the significant role SBF’s parents played in his business ventures, with one source even referring to Joseph Bankman as the “founding father” of the companies.
Both parents had successful careers before SBF’s alleged fraudulent activities, with over 30 years of service at Stanford’s law school. “We will return the funds in full,” a university representative stated.
This statement comes amidst a lawsuit filed by FTX against SBF’s parents, seeking to recover “millions of dollars” in allegedly misused funds and property that will be added to the bankruptcy estate.
The lawsuit accuses the defendants of using their positions in the company for personal gain.
While the exact amount of claims is not specified, it includes property in the Bahamas worth $18 million, donations to Stanford University, and other payments and transfers of property.