NEW YORK (AP) – Following the lawsuit With the parents of FTX Trading founder Sam Bankman-Fried Stanford University claims to have received millions of dollars in gifts from the now-collapsed cryptocurrency exchange, saying the school will return all gift money collected from FTX and related companies.
FTX lawyers said on Monday that Allen Joseph Bankman and Barbara Fried used their influence over their son to collect millions from the company, spending lavishly on a luxury home and “pet causes” – and Stanford University.
Bankman, a Stanford law professor and expert on tax law, directed more than $5.5 million in charitable contributions from FTX to the university, the suit says — in an attempt to “cover up” what the complaint described as “extreme self-dealing.” Enrichment and enrichment of the employer at the expense of FTX Group.
A university spokeswoman said in a statement to The Associated Press on Wednesday that Stanford “received gifts from the FTX Foundation and FTX-related companies primarily for pandemic prevention and research.”
Stanford is in talks with lawyers for FTX’s creditors to recover the gifts, the spokesman added, and said they will “return the money in full.” The university did not disclose the monetary value of the gifts received.
Like Bankman, Fried worked at Stanford for many years. She is a retired law professor.
FTX He entered bankruptcy. When the company runs out of money after the company is in line with the bank’s work in November. Bankman-Fried has He pleaded not guilty. He was accused of defrauding investors and stealing customer deposits to make real estate purchases, campaign contributions to politicians and risky trades.
Monday’s complaint filed in the company’s bankruptcy case in Delaware, He accuses In addition to the Bankman-Fried parents’ involvement in the abuses that led to the collapse of FTX — the couple siphoned millions from FTX for their own personal gain — allegations that Bankman “played a key role in perpetuating this culture of misrepresentation and gross mismanagement and helped cover up fraud committed by FTX insiders.”
Lawyers for Bankman and Freed issued a statement calling the claims “absolutely false” – adding that the lawsuit was “a dangerous attempt to intimidate Joe and Barbara and undermine the judicial process just days before their son’s trial.”
Bankman-Fried’s trial on federal fraud charges is scheduled to begin Oct. 3 in New York. Several other former FTX executives have pleaded guilty to fraud and conspiracy charges and are cooperating with investigators.
__________________
AP reporter Randall Chase from Dover, Delaware contributed to this report.
