Before his FTX company crashed last November, Sam Bankman-Fried showered lawmakers with tens of millions of dollars in political contributions. The failed cryptocurrency exchange now wants that money back.
FTX Group announced on Sunday that it is sending “secret letters” to lawmakers and other political beneficiaries of Bankman-Fried, his deputies, and his firms, requesting that the money be returned by the end of the month.
Sam Bankman-Fried Donations
The debtors stated in a press release that they “retain the right” to seek repayment – plus interest – through court action.
The announcement escalates a battle over up to $93 million in political donations made by FTX to a variety of DC organizations, according to the debtors’ estimates. Legislators and issues from all political parties are represented.
According to CoinDesk, one in every three members of the current United States Congress got contributions from Bankman-orbit. Fried’s It was a massive influence campaign that cut across party lines.
FTX’s debtors are contacting “political personalities, political action funds, and other receivers of contributions or other money” in a discreet manner.
FTX has requested that the monies be refunded by February 28. The decision comes after FTX requested in December that fund beneficiaries return the funds voluntarily.
Regarding non-voluntarily returned payments, FTX stated that its debtors “retain the right to start actions before the Bankruptcy Court to seek the return of such payments, with interest accruing from the day any action is commenced.”
FTX stated that making a “payment or donation to a third party (including a charity)” in the amount obtained from FTX would not preclude FTX from receiving the funds back.
Bankman-Fried also gave roughly $262,200 to Republican politicians. Ryan Salame, co-CEO of FTX Digital Markets, reportedly gave Republicans $20 million during the 2022 election season.
Bankman-Fried was detained in the Bahamas in December and extradited to the United States, where he is charged with campaign finance violations, wire fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and other crimes. In late December, he was released on a $250 million bail.