FTX warns it will claw back political donations and contributions
Bankrupt cryptocurrency exchange FTX says it is considering using legal avenues to recover all payments and contributions handed out by its associated entities and former executives, which could include the millions in political donations made from its former CEO Sam Bankman-Fried.
In a Dec. 19 press statement, FTX said it had already “been approached by a number of recipients of contributions or other payments” that were made by, or at the direction of Sam Bankman-Fried or other officers, adding those entities have sought “directions for the return of such funds.”
Sharing our press release just issued: FTX Debtors Announce Process for Voluntary Return of Avoidable Payments https://t.co/l57F7zgKPJ
Just last week, three prominent Democratic organizations pledged to return over $1 million worth of Bankman-Fried’s political donations on Dec. 16, following Bankman-Fried’s arrest and indictment.
Days earlier on Dec. 13, a press secretary for the White House was asked whether the Biden administration would return the $5.2 million in campaign donations previously given by Bankman-Fried but refrained from answering at the time.
In its recent statement, FTX invited those who received funds to “make arrangements for the return of such payments” warning if they weren’t returned voluntarily it would commence legal action in court to claw back the payments with interest.
Legal experts previously warned up to $73 million worth of FTX’s political donations could be targeted for recovery to repay the speculated one million creditors owed up to an estimated $10 billion to $50 billion in its bankruptcy case.
Meanwhile, some members of the United States Congress on the receiving end of FTX’s political contributions have reportedly donated the
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