FTX founder Sam Bankman-father, Fried’s Stanford Law School professor Joseph Bankman, has canceled the one class he was scheduled to teach this winter. As a result, neither of the FTX founder’s professor parents will be teaching at Stanford Law School next quarter. The news comes amid criticisms surrounding the family’s purchase of a $16.4 million vacation home from FTX just before its demise.
Barbara Fried is not listed as the teacher for any courses in her course catalog for the upcoming academic year. In a statement to The Daily, she claimed that this resulted from a “long-planned” retirement decision and has “nothing to do with anything else going on.” Fried is a professor who has retired from teaching but is still permitted to do so in the future. Although she wasn’t scheduled to teach this academic year, she wrote that she “hopes to” return to teaching.
In response to the request for comment regarding his departure from teaching at Stanford Law, Bankman remained silent.
Following the collapse of his cryptocurrency exchange FTX in November, Bankman-Fried could face serious criminal charges. Bankman-Fried was the CEO of FTX until November 11, when the company declared bankruptcy. According to Nerdwallet, FTX, which had a market capitalization of $32 billion a few weeks ago, crashed due to a shortage of liquidity and mismanagement of funds, resulting in a large volume of withdrawals from worried investors.
According to CNBC, at least $8 billion in customer money is missing, allegedly used to backstop billions at Bankman-hedge Fried’s fund Alameda Research. Both companies have declared bankruptcy.
Legal experts believe Bankman-Fried could face several years in prison for fraud.
It “sure looks like there’s a chargeable fraud case here,” said Renato Mariotti, a former federal prosecutor and trial lawyer who has defended clients in derivative-related claims and securities class actions, to CNBC.
When Reuters revealed that the professors had been named owners of a $16.4 million vacation home bought by FTX, Bankman-parents Fried became embroiled in the scandal. According to Reuters, his parents want to return the deed to FTX.