Summary
- Funds received from FTX, a troubled cryptocurrency exchange will be returned by politicians and political organizations by February 28.
- As lawyers investigate $93 million in political contributions as part of the company’s extensive bankruptcy case, FTX debtors are issuing confidential letters to recipients of donations linked to FTX to all those Politicians and political groups.
A cryptocurrency exchange has asked political leaders and organizations to reimburse money related to former CEO Sam Bankman-Fried and other FTX executives by the end of February.
According to the exchange, FTX is issuing private notices to politicians, political action committees, and other beneficiaries of contributions and payments. In November, the cryptocurrency exchange requested bankruptcy protection.
According to court records submitted in January, the FTX debtors are examining $93 million in political contributions made between March 2020 and November 2022. In a different criminal case, Bankman-Fried has pleaded not guilty to accusations of violating campaign funding laws.
Some political organizations that received funding from the FTX have already started the process of returning the money. The Democratic National Committee announced in December that it will set aside more than $1 million in FTX-related money and return it at the order of bankruptcy lawyers, along with the party’s important Senate and House campaign committees.
Some legislators who got donations associated with FTX made an effort to symbolically disassociate themselves from the exchange by giving the donations to charity. That won’t stop bankruptcy attorneys from seeking to recover the money, as per FTX.
“Recipients are advised that making a contribution or donation to a third party (including a charity) in the amount of any payment received from an FTX contributor does not preclude the FTX debtors from claiming recovery from the recipient or any subsequent transferee,” according to FTX.