FTX could owe Stanford money, creditors list shows

Jan. 30, 2023, 11:35 p.m.

A 116-page document filed late last Wednesday revealed thousands of creditors that the failed cryptocurrency exchange FTX could owe money to after its crash. And among the biggest names in tech, journalism and government, Stanford University was listed as a potential creditor.

It is unclear whether the University, along with the School of Medicine and the Stanford Federal Credit Union, which were also named in the document, were creditors of FTX or simply included as a party that would be interested in receiving notice of a bankruptcy proceeding.

The University did not respond to a request for comment, and FTX’s lawyers filed an additional document advising the court that the creditor matrix is “intended to be broad” and that inclusion on the list does not “necessarily indicate” the party is a creditor. 

“This type of creditor matrix is prepared by the debtors for the purpose of providing notice to interested parties in a bankruptcy proceeding and is not necessarily evidence of a creditor relationship,” a spokesperson for Goldman Sachs told CNN.

The popular crypto platform declared bankruptcy in November and is estimated to owe at least $3.1 billion to over a million creditors. Former CEO Sam Bankman-Fried’s connection to Stanford runs deeper than his old company’s creditor matrix, however. 

Bankman-Fried, born to two Stanford Law professors, Joseph Bankman and Barbara Fried, grew up on campus, where he is now residing under house arrest. 

Bankman-Fried was indicted in December but continues to deny ever committing fraud. His trial is scheduled for October of this year. 

Contact Oriana at news ‘at’ stanforddaily.com.

Login or create an account