93 million to be returned
The FTX case continues to make noise. The new management of the cryptocurrency trading platform wants to reclaim political donations made by Sam Bankman-Fried and other former FTX executives.
Politicians and other political groups will have to return the donations they received from SBF, among others, by February 28, 2023. We’re talking about a $93 million loan that FTX bankruptcy managers will have to recover.
“The FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or under the direction of the FTX Debtors, Samuel Bankman-Fried, or other officers or directors of the FTX Debtors ( collectively, the “FTX Contributors”). Such recipients are requested to return such funds to the FTX Debtors by February 28, 2023.”
In 2020, Sam Bankman-Fried was the second largest “CEO contributor” to Joe Biden’s election campaign with a $5.2 million donation. During the midterm elections in November, he acknowledged his role as a “major donor” to political candidates, both Democratic and Republican.
FTX’s contributions to political parties and candidates are currently under investigation by U.S. prosecutors.
On December 19, FTX’s new leadership offered an opportunity for politicians and political organizations to voluntarily return funds previously donated by its leadership. Unreturned contributions will now have to be repaid with interest.
“To the extent such payments are not voluntarily returned, the FTX Debtors reserve the right to bring actions in the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is brought.”
Sam Bankman-Fried’s involvement in the American political world is not a first. Currently FTX’s lawyers are fighting to track down missing funds following the cryptocurrency trading platform‘s bankruptcy. According to estimates, more than 200 elected officials are involved in some way with SBF and FTX’s political donations.