- Stanford University has indicated that it intends to reimburse millions to FTX after confirming illegal donations by Sam Bankman Fried.
- FTX legal counsel has increased efforts to crawl back all donations that were made by EX-CEO Sam Bankman Fried using customer deposits
Stanford University has confirmed receiving donations from FTX for pandemic-related prevention and research but will fully refund it. The institution is complying with calls from FTX liquidation officials to refund the money which had been part of customer deposits.
FTX continues ploughing back illegal donations
FTX, under Sam Bankman Fried’s leadership, had dished out multiple donations, which are alleged to have come from customer deposits. The CEO sought political and other strategic allies, giving out those donations.
Following the collapse of the multi-billion dollar company, it has been understood that there were a lot of fraudulent activities and mismanagement of customer funds, which has hurt customers and creditors. While Sam Bankman Fried is facing charges in the United States, FTX is under a liquidation process to repay its creditors and refund customer deposits.
As part of the repayment process, the current leadership has moved to reclaim all donations made illegally. The California-based institution, Stanford University, falls in the entity category that is to refund all donations issued to them.
The university received $5.5 million between November 2021 and May 2022. In a Sept. 19 email, the institution’s spokesperson said that its administration had been discussing with FTX legal counsel to recover the gifts received and intended to refund the defunct exchange.
Similar efforts and reports of donations being ploughed back are still expected to happen with time as the FTX debtor’s legal counsel seeks to gather as much funds as possible from the liquidation process. Keep watching Fintech Express for more updates on crypto and other fintech-related fields.