FTX founder Sam Bankman-Fried was a major donor to the Democratic Party in the US, but politicians who have received donations have pledged to return only a fraction of what they have received so far.
The money that is now being returned to the bankrupt crypto exchange is only 2.2%, or $1 million, of the money donated by Banker-Fried to political candidates of the Democratic Party. Of the $1m, the Democratic National Committee (DNC) has said it will return $850,000 to FTX.
In total, the former FTX boss donated some $5.2m to Joe Biden’s 2020 presidential campaign, and more than $40m to other Democrats ahead of the 2022 midterm elections.
FTX’s new CEO after John Ray III promises to return some funds from Democratic organizations demanded a refund for bankruptcy estate. per a Press release Recipients of donations have received private messages from the bankrupt exchange, released earlier this month, asking them to return the funds by February 28.
“In the event such payments are not returned voluntarily, the FTX Debtors reserve the right to initiate actions before the bankruptcy court to require the return of such payments,” the press release said.
major political donors
Before the collapse of FTX and associated crypto trading firm Alameda Research, Bankman-Fried was known as a major donor to the Democratic Party. He has also donated to other causes, often focused on health, pandemic prevention, and climate change, all as part of his push for “effective philanthropy”.
According to available data, Bankman-Fried was the second largest donor to the Democratic Party in the 2021-2022 election cycle, after billionaire George Soros. According to OpenSecrets, he Donation More than $46 million to candidates and groups affiliated with the Democratic Party.
The former FTX boss has also stated in an interview with crypto influencer Tiffany Fong that although he was very public about his donations to the Democrats, he also Donated anonymously to Republican politicians,
“All my Republican donations were black,” he said, reasoning that journalists “go to hell if you donate to Republicans.”
FTX and its group of crypto companies filed for Chapter 11 bankruptcy In early November. Sam Bankman-Fried, disgraced founder of FTX, was arrested later after criminal charges were formally filed against him by US prosecutors in the Bahamas. He was eventually extradited to the US, where he was later released from prison. posting a $250m bond in a New York court.
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