Sam Bankman-Fried’s parents are both professors of law at Stanford. FTX has sued them to recover millions in misappropriated funds.
Stanford University, the workplace of Joe Bankman and Barbara Fried, will return the millions of dollars it received from FTX and its related entities, the university told Bloomberg.
“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,” the spokesperson said.
Yesterday, CryptoPlug reported that FTX has sued Sam Bankman-Fried’s parents to “recover millions” in misappropriated FTX funds.
Both are professors of law at Stanford university, with Joe Bankman specialising in tax law.
FTX, now led by John Ray III, accuses Mr Bankman and Ms Fried of fraudulently transferring and misappropriating millions in funds. One such payment is a $5.5 million cash gift made to Stanford, allegedly facilitated by Joe Bankman.
“Stanford received gifts from the FTX Foundation and FTX-related companies largely for pandemic-related prevention and research,” the university said.
Sam Bankman-Fried is currently behind bars awaiting trial for his part in the collapse of FTX, where he faces a litany of fraud-related criminal charges. It’s set to commence on October 2.
Joe Bankman and Barbara Fried have denied the charges against them.
Luxury real estate, $10 million cash gifts and more
The September 18 FTX filing alleges that Sam Bankman-Fried’s parents heavily profited from FTX funds.
The filing states, “Bankman’s command of tax law and unique understanding of the FTX Group’s muddled corporate structure allowed him to facilitate the transfer of a cash gift totaling $10 million to himself and Fried consisting of Alameda Ltd. funds.”
In addition, FTX paid nearly $19,000,000 to Blue Water, to which Bankman and Fried “received title”, as well as $90,000 in Blue Water-related expenses.
Expenses outlined in the filing include $1,200-per-night hotel stays, plane tickets, and a $200,000 annual salary to Joe Bankman for his role as an adviser to the FTX Foundation.
The legal background of Joe Bankman and Barbara Fried is a notable point in the filing.
It outlines that both “deployed their decades of experience as sophisticated law professors and veneer of legitimacy not to help the FTX Group, but rather to plunder it in order to enrich themselves and their pet causes.”
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