FTX Asks Politicians to Voluntarily Return Donations From Sam Bankman-Fried

Crypto exchange failure In order to assist pay off its growing debts, FTX is requesting that politicians and organizations return the millions of dollars in donations they received from former CEO Sam Bankman-Fried.

According to a news release the company issued on December 19, several beneficiaries of contributions or other payments that were made at the request of Bankman-Fried, a frequent political donor, have already contacted the company.

These beneficiaries have asked for instructions on how to return the money to the FTX Debtors. For the benefit of consumers and creditors, the FTX Debtors are coordinating with these beneficiaries to ensure the swift restoration of these funds to the FTX Estates, the business said.

In light of its debilitating obligations, the company subsequently issued an invitation to all receivers of such payments to get in touch with them and arrange for the return of the funds.

It also said that failure to return the funds voluntarily could result in legal action and the addition of interest to the donation.

According to the statement, the FTX Debtors “plan to start procedures before the Bankruptcy Court to seek the return of such monies, with interest accruing from the day any action is commenced,” if the payments are not returned voluntarily.

Tens of millions of dollars were sent to illegal campaigns,
One of the biggest political donors in the US, Bankman-Fried gave money to both Democratic and Republican candidates, campaign groups, and several charities.

Bankman-Fried is charged with making “tens of millions of dollars in illicit campaign contributions” to both candidates from both parties without putting his name on them, according to the prosecution.

In the 2021–22 election cycle, he is thought to have given around $70 million to charities and politicians alike, according to a Financial Times examination of available documents.

Following the FTX affair, a number of legislators who received donations from Bankman-Fried have declared they will donate the funds to charity. According to the Associated Press, the bulk of them are House Democrats.

After Bankman-Fried was accused of multiple counts of fraud last week, three well-known Democratic organizations—the Democratic National Committee (DNC), the Democratic Senatorial Campaign Committee (DSCC), and the Democratic Congressional Campaign Committee (DCCC)—promised to return donations made by him.

The DSCC has set aside $103,000 to repay, and the DCCC has set aside $250,000, according to The Washington Post. The DNC reported receiving $815,000 in contributions from FTX since 2020.

According to The Associated Press, some Democratic members, including Reps. Hakeem Jeffries (D-N.Y.) and Pete Aguilar (D-Calif.), have already made donations to various causes.

On August 5, 2020, Senator Dick Durbin (D-Ill.) gives a speech in Washington. (Image by Carolyn Kaster/Pool/Getty) )
Senate Majority Whip Biden Campaign Received FTX Donations Totaling $5.2 Million According to the journal, Sen. Patty Murray (D-Wash.) has promised to contribute her money to a Washington state charity while Sen. Dick Durbin (D-Ill.) stated he will donate his to a “appropriate charity.” Others have given to Planned Parenthood, including Sen. Tina Smith (D-Minn.).

According to The Wall Street Journal, Bankman-Fried also contributed the second-largest amount to Joe Biden’s presidential campaign, which raised about $5.2 million in total.

When asked when President Biden plans to return the donation at a press briefing on December 13, White House press secretary Karine Jean-Pierre declined to comment, citing the Hatch Act of 1939, which forbids civil service employees in the executive branch of the federal government from engaging in certain types of political activity.

“I have a restricted vocabulary. Furthermore, I simply cannot discuss political donations or anything else related to them. From here, I can’t talk about it,” Jean-Pierre replied.

On Dec. 19, FTX issued a warning, noting that doing so would “not prevent the FTX Debtors from seeking recovery from the recipient or any later transferee,” that beneficiaries of gifts from FTX should not utilize any of the money to make donations to a charity or any other third party instead.

On November 11, FTX, formerly the third-largest cryptocurrency exchange in the world, filed for Chapter 11 bankruptcy as a result of a shocking collapse that prevented millions of users from accessing their digital wallets.

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