FTX to Recover Sam Bankman-Fried’s Political Donations by The End of February

FTX to Recover Sam Bankman-Fried’s Political Donations by The End of February

It is believed that around 200 Congress members received political donations from Bankman-Fried and other FTX executives.

FTX, a bankrupt company that formerly operated a cryptocurrency exchange and crypto hedge fund, aims to recover political donations made by former FTX CEO Sam Bankman-Fried and other executives.

According to the press release shared on February 5th, FTX Debtors are asking political figures or political action funds to return donations by February 28th, 2023.

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It is believed that FTX will use these donations to repay the crypto exchange’s creditors.

In the press release, FTX Debtors noted that if recipients fail to return donations, FTX is set to take legal action against donation owners.

To the extent such payments are not returned voluntarily, the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.

During the 2020 election season, Sam Bankman-Fried reportedly donated $5.2 million to Joe Biden’s political campaign and was the second-largest “CEO contributor.” In the 2022 midterm election, Sam Bankman-Fried called himself a “significant donor” for both Republican and Democratic candidates.

Unusual Whales has recently reported that around 200 members of Congress have received political donations from FTX executives, including Sam Bankman-Fried, Ryan Salame, Nishad Singh, and others.

It is worth noting that in January, FTX filed court documents revealing that between March 2020 and November 2022, FTX executives made donations worth around $93 million.

FTX attorney Andy Dietderich noted that the crypto exchange has “recovered $5 billion in cash and liquid cryptocurrencies.” It is estimated that FTX has liabilities of around $9 billion.

On December 20th, the pro-Democratic Senate Majority Political Action Committee (PAC) decided to return $3 million worth of donations made by FTX executives.

FTX Debtors are not only working on recovering donations worth millions of dollars but also asking Sam Bankman-Fried’s closest advisors to cooperate in providing information for ongoing investigation.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree