Stanford University decided to return millions of dollars in donations to the bankrupt crypto exchange FTX.
FTX was a popular crypto exchange until Nov 2022. Following a Coindesk media’s report over the FTX’s bad financial position. In mid-November of last year, the FTX exchange filed for bankruptcy under Chapter 11 bankruptcy in a US bankruptcy court along with more than 120+ subsidiaries. Allegedly FTX co-founder Sam Bankman-Fried (SBF) misused customers’ funds for personal benefits.
On 19 Sep 2023, Bloomberg reported that a Stanford University spokesperson said that the University planned to return more than $5.5 million in funds to the FTX exchange which was initially received from FTX Group donations.
Earlier this FTX issued a legal notice to all the companies, foundations, & SBF’s closed people like friend, relatives, etc., who received the funds from the FTX or FTX subsidiaries on behalf of SBF’s order.
Just a few days ago, the FTX bankruptcy team sued SBF’s parents and alleged that more than $20 million & some undisclosed amount of funds were received by his parents from the FTX exchange unethically. Through the court filing, FTX asked the court to order SBF’s parents to return all the funds to the exchange.
In response to the FTX’s argument, SBF’s parents’ lawyers claimed that all the allegations were false and SBF’s parents never used their links for personal financial benefits.
FTX Token (FTT)
The current trade price of the FTX token (FTT), a native token of the FTX crypto exchange, is 96% down over the last 1 year of trade price.
In the past 12 months, the trade price of the FTT token surged three times by 10-20% at different occasions following rumors over potential chances of the re-launch plan of the FTX exchange.
Read also: SEC chief confirms “more enforcement actions coming against crypto companies”