Stanford University is in discussions with FTX's legal representatives to return gifts it received from the troubled crypto exchange. This follows a lawsuit against Sam Bankman-Fried's parents, accusing them of benefiting by millions from their FTX connections. The university confirms talks to return the gifts, emphasizing their pandemic-related nature. Bankman and Fried's attorneys deny fraudulent transfers.

Joseph Bankman, a Stanford professor, distanced himself from the donations despite university knowledge. FTX is now led by CEO John J. Ray III. The lawsuit claims FTX was a "family business" with Bankman diverting millions to Stanford. Bankman allegedly directed a $500,000 donation from a subsidiary in 2021 for tax reasons.