FTX Demands Return of Political Donations: $93M Up for Grabs

• FTX Group is requesting the return of donations from politicians who have benefitted from the company’s funds.
• The debtors are sending confidential letters to political figures and action funds who received payments from FTX, Samuel Bankman-Fried, or other officers of the company.
• If these parties do not voluntarily repay the money by February 28th, 2023, then legal action may be taken against them with accrued interest on what they owe.

FTX Requests Return of Donations

FTX Group is asking for its money back after donating tens of millions of dollars to politicians throughout the 2022 midterm election cycle. Recipients of these contributions must return the funds by February 28th, 2023 or face legal action taken by the Bankruptcy Court with interest accruing on what they owe. It is estimated that up to $93 million in total may be returned to FTX if all related parties comply with this request.

Donation Beneficiaries

At least 196 members of Congress have been identified as having received donations from exchange giant FTX, including House Speaker Kevin McCarthy (R-Calif) and Senate Majority leader Chuck Schumer (D-NY). These donations were made at the direction of FTX Debtors such as Sam Bankman-Fried and other officers or principals associated with the company.

Voluntary Refund

The process was announced in December when FTX established arrangements for recipients to voluntarily return their money. A press release on Sunday stated that confidential letters were being sent out to those affected asking them to comply with this request before facing possible legal action from the Bankruptcy Court if they fail to do so.

Political Contributions

Political contributions such as those given by FTX can be used for a variety of purposes including campaign financing and influencing elections through support for certain candidates or causes. In this case, it appears that many high-profile political figures were supported financially by Sam Bankman-Fried’s former company prior to its bankruptcy filing last year.

Conclusion

After receiving hefty donations from now bankrupt exchange giant FTX during last year’s midterm election cycle, politicians are now being asked to return those funds before February 28th or face potential legal action taken against them by the Bankruptcy Court with interest accruing on what they owe.