FTX founder Sam Bankman-Fried once gave a lot of money to people who were wondering where it came from. These people include powerful figures in the public service and the ordinary, not to mention those who have had the ability in the private sector.
We are talking about hundreds of millions of dollars in prizes. Is it bribe money? gift? Or, for a good cause like charity?
Who cares?
He just showered politics with tens of millions of dollars in campaign donations. The recipients just welcome it with open arms and silence.
Fast forward to 2023. The party is over. And, FTX wants all the money back.
FTX Wants The Benjamins Back
FTX sent a “confidential letter” to former donor recipients asking for the donated funds to be returned, the bankrupt crypto exchange said in a press release Sunday.
“FTX Debtors sent confidential messages to political figures, political action funds, and other recipients of contributions made by or at the direction of Debtors FTX, Samuel Bankman-Fried or other officers or principals of Debtors FTX,” pers. release read in part.
The recipients have until February 28, 2023 to “return the funds” to the FTX Debtors, according to the announcement. The move comes after FTX issued a call for fund recipients to voluntarily repay the money in December.
Previously, the same lender calculated that Bankman-Fried donated $93 million to political causes. According to the press release, if the money is not returned freely, the debtor “reserves the right” to pursue legal action to force repayment, plus interest.
Sam Bankman-Fried. Image: EuroNews
Clawing Back Political Donations
Bankman-Fried, the 30-year-old former CEO of FTX, was the second largest donor to the Democrats between 2020 and 2022, providing more than $37 million to the party’s election campaign.
Open Secrets reveals that FTX Digital Markets Co-CEO Ryan Salame donated approximately $20 million to Republican candidates during the same period.
Now, here’s a tweet from “unusual_whales” with a picture of the list of recipients of the donated money:
BREAKING: FTX sent letters to politicians who received donations from FTX to return the money they received.
There is no list of politicians who have given money, and how much.
Until now.
See it here: https://t.co/uK8CTsLugJ pic.twitter.com/JnN2j8VFDL
— unusual_whales (@unusual_whales) February 5, 2023
Twitter user Kane Vato commented on the list saying:
Another Twitter user, DrinkWater, made:
FTX has also tried to take millions of dollars that the cryptocurrency exchange and Bankman-Fried donated to charity, but this can be difficult because some of the funds have been spent.
FTX apparently has tried to recover the money donated to Florida students as a scholarship, in addition to the contributions received from politicians.
The federal government alleges that Bankman-Fried misappropriated consumer money for campaign contributions, real estate purchases, and venture capital investments. He has maintained his innocence despite numerous accusations of fraud and conspiracy.
Bankman-Fried pleaded not guilty to allegations of fraud, conspiracy, violating campaign finance laws, and money laundering in New York federal court last month.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Bankman-Fried is currently under house arrest at her parents’ home in California, with a digital monitor attached to her ankle.
If convicted of one of the eight counts he has been charged with, he faces life in federal prison without the option of supervised release.
Meanwhile, John Ray III, the new CEO of FTX, stated that the exchange could be restored. Although the company collapsed, he never gave up hope of recovery and has done everything to revive the failed business.
Featured image from Lawyer Monthly