- Advertisement -
collapsed crypto exchange ftx Bankruptcy proceedings in the US have begun to recover money paid as political donations.
The donation, which was made at the direction of the founder and former CEO of FTX Sam Bankman-FriedSeveral reports have indicated an amount of hundreds of millions of dollars.
FTX “intends to initiate actions before the bankruptcy court to require the return of such payments, together with accrued interest from the date of initiation of any actions,” FTX, which is now led by bankruptcy expert John J. Ray III, said. is in, said in a statement, while sharing an email address that recipients can use to return donated funds.
“Recipients are cautioned that payment or donation to any third party (including charity) in the amount of any payment received from an FTX Contributor shall not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee could be,” added the now-bankrupt company, according to a report good by The Guardian.
Donations made to various causes
Donations were made by FTX and Bankman-Fried to politicians, celebrities and various charities. Areas of particular interest to Bankman-Fried that have received funding include climate change prevention and mitigation projects, and work to prevent future pandemics.
Additionally, Bankman-Fried is noted as one of the largest donors to the 2020 re-election campaign of President Joe Biden. However, it is less known that Bankman-Fried secretly donated extensively to Republican political candidates.
“I donated to both the sides. I’ve donated equal amounts to both parties,” Bankman-Fried told crypto commentator Tiffany Fong in an interview. She added that all of her Republican donations were “dark”.
,[…] Journalists give a shit if you donate to Republicans. They’re all ultra-liberal, and I didn’t want that fight,” Bankman-Fried said of her political donations at the time.
FTX Foundation reports $140m in donations
In October this year, the FTX Foundation, a philanthropic organization founded by Bankman-Fried, reported that it had given away $140 million.
Following the collapse of FTX, the US Department of Justice alleged that the donation was the result of criminal money laundering, and that the payments violated campaign finance regulations.
It is expected that withholding donations made to politicians and charities will be a relatively straightforward part of the bankruptcy process, given the clarity regarding the issue in US bankruptcy laws.
