Stanford University, one of the most prestigious academic institutions in the world, has decided to return millions of dollars that it received from FTX, a cryptocurrency exchange platform, according to a report by Bloomberg. The move comes amid growing concerns about the environmental and social impact of the crypto industry, as well as the potential conflicts of interest that may arise from accepting donations from such sources. FTX has been facing devastating setbacks owing to its bankruptcy filing in November 2022.
According to Bloomberg, Stanford received $7.5 million from FTX in June 2021, as part of a $20 million donation that the exchange made to various universities. The donation was intended to support research and education in blockchain and digital assets, and was announced by FTX CEO Sam Bankman-Fried, a Stanford alumnus, on Twitter.
However, the university later faced backlash from some faculty members and students, who questioned the ethics and transparency of accepting money from a company that is involved in highly speculative and volatile markets, and that may have a negative impact on the environment and society.
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In a statement, Stanford said that it has decided to return the funds to FTX, after reviewing its policies and procedures for accepting gifts. The university said that it is committed to ensuring that its research and teaching are independent and free from undue influence, and that it respects the views and values of its community. The university also said that it will continue to explore opportunities to collaborate with FTX and other partners in the crypto space, as long as they align with its mission and principles.
FTX did not immediately respond to request for comment. The exchange is one of the largest and fastest-growing platforms in the crypto industry, with a valuation of $18 billion as of August 2021. It has been making headlines for its aggressive marketing and sponsorship deals, such as naming rights for the Miami Heat’s arena, and partnerships with celebrities like Tom Brady and Kevin O’Leary.
FTX has also been trying to position itself as a socially responsible company, by pledging to donate 1% of its revenue to charity, and by offsetting its carbon footprint through carbon credits.
However, some critics have argued that FTX’s actions are not enough to address the fundamental issues that plague the crypto industry, such as its high energy consumption, its lack of regulation and oversight, its susceptibility to fraud and manipulation, and its role in facilitating illicit activities like money laundering and tax evasion.
They have also pointed out that FTX’s donations may be seen as a way of buying influence and legitimacy in the academic world, and that they may compromise the integrity and credibility of the research and education that they fund.
Stanford’s decision to return FTX’s donation may set a precedent for other universities that have received similar gifts from the crypto industry, such as Harvard, MIT, Yale, Cornell, and Berkeley. It may also spark a broader debate about the ethical implications of accepting money from controversial sources, and the need for more transparency and accountability in the academic fundraising process.
