FTX seeks to recoup SBF’s donations to US politicians

Bankrupt cryptocurrency exchange FTX has said it is working to recover political donations made by its infamous founder Sam Bankman-Fried. FT report.

Sam Bankman-Fried (SBF) was the darling of many US politicians until his billion dollar crypto empire collapsed on November 11th.

Following FTX’s bankruptcy, SBF was arrested in the Bahamas and charged by US authorities with crimes related to money laundering and improper management of client funds for political contributions.

Specifically, the Southern District of New York (SDNY) alleged that SBF violated US campaign finance regulations by making donations to US politicians in someone else’s name.

The SBF has reportedly donated more than $70 million to US politicians along with FTX executives during the 2021-2022 election period. SBF is 4th Mega Donor Contributed more than $39 million towards the 2022 midterm elections.

As part of the restructuring process, FTX’s new management, led by John Ray III, said it would set up a process to accept refunds from politicians.

Some recipients of SBF’s donations have reportedly approached the company to return the funds, while others have said they will donate the funds to charity.

However, FTX warns that donating funds to charity does not stop the company from seeking refunds and taking legal action against the organizations that received them.

“Unless such payments are voluntarily returned, FTX’s debtor intends to commence a lawsuit in bankruptcy court demanding the return of such payments and interest accrues from the date the lawsuit is commenced. ,” said FTX.

A post by FTX trying to reclaim SBF donations to US politicians first appeared on CryptoSlate.

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