FTX wants politicians, PACs to return donations — and possibly sue to recover money

The FTX told the political world on Sunday that the bankrupt crypto exchange wants its money back after millions of dollars flowed into the hands of candidates and an action committee under the direction of its founder. founder and former CEO Sam Bankman-Fried or others in his regime.

John John Jay Ray III, the newly appointed CEO of FTX who was appointed to oversee the exchange’s Chapter 11 bankruptcy after it collapsed in November, previously said that the Exchange related contributions should be returned.

But Sunday’s statement was firmer, demanding the return of “contributions or other payments” by February 28 and repeating an earlier warning that the company would process non-payments. voluntarily returned through legal means “with interest accrued from the date any action was commenced. .”

“FTX debtors are sending secret messages to political figures, political action funds, and other recipients of donations or payments,” Press Release Statuses.

The company also reiterates that recipients who have donated FTX-related funds to third parties such as charities will not face difficulty and that the company will still seek to recover those funds.

FTX Now Looking For ‘Fast Return’ Of Sam Bankman-Fried Political Contributions

FTX, once valued at $32 billion, filed for bankruptcy last year after the price of the FTT token on the exchange plummeted, which caused a run-in on the exchange and ultimately revealed that they do not have enough reserves of client assets because they cannot honor withdrawals.

Bankman-Fried was later arrested and charged with eight finance counts, such as securities fraud, money laundering and campaign finance violations by federal prosecutors in the Southern District of New York.

While Bankman-Fried pleaded not guilty to the series of charges and his trial is set to take place in October, he is accused of embezzling billions of dollars in client funds to promote operations at the company. his trading company Alameda Research, buys private property and donates. to political campaigns.

Before his crypto empire collapsed, Bankman-Fried publicly supported Democratic Party candidates and was one of the party’s biggest donors in the 2020 election cycle. Last month, White House Press Secretary Karine Jean-Pierre refuse to comment on whether President Joe Biden will return the money he received as a candidate.

The crypto tycoon is disgraced disclosure that he has also given money to Republican candidates in an interview with influencer Tiffany Fong, claiming that he “has donated the same amount to both parties.”

“All of my Republican contributions are dark,” he noted, referring to donations for which the source of the funds was not disclosed. He said donations are kept separate because journalists are “terrified if you donate to the Republican party.”

Major Democrat PAC Will Return $3 Million in FTX Executive Donations: Report

ONE public spreadsheet maintained by, a nonprofit that oversees US lobbying and campaign finance, has tracked more than $84 million in donations to candidates and political organizations between Bankman-Fried, former FTX co-CEO Ryan Salame and former FTX chief technical officer Nishad Singh.

Last month, documents filed with the Federal Election Commission revealed many senior employees who worked for FTX. maximum campaign donation to George Santos (R-NY), the congressman facing public scrutiny because of claims about his past that were allegedly untrue.

And some politicians have move to return money they received from Bankman-Fried, such as former representative Beto O’Rourke (D-TX), who said he returned a $1 million donation shortly before the exchange filed for bankruptcy. .

Other officials, including Senators Dick Durbin (D-IL) and Senators Kirsten Gillibrand (D-NY), have announced that they will donate to charities in an amount matching the amount. the money they receive in relation to FTX. The office of Senators Durbin and Gillibrand did not immediately respond to a request for comment decryption.

But the extent to which candidates and political groups benefit from FTX and its affiliates may not be entirely clear until after a new deadline is set, depending on what actions the exchange takes. bankruptcy will take place.


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