Key Takeaways
- FTX “has sent confidential letters” to politicians and other political beneficiaries of Bankman-Fried, his deputies, and his companies, seeking the donations back.
- In November 2022, SBF revealed that he had been “supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC.”
On February 5, bankrupt crypto empire FTX stated that it had asked politicians to return the money the firm had given as donations. FTX “has sent confidential letters” to politicians and other political beneficiaries of Bankman-Fried, his deputies, and his companies, seeking the donations back.
The latest development is part of the firm’s effort to repay its creditors. “FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried, or other officers or principals of the FTX Debtors (collectively, the ‘FTX Contributors’). These recipients are requested to return such funds to the FTX Debtors by February 28, 2023″, the official statement reads.
Sam Bankman Fried had earlier admitted to giving contributions to electoral campaigns to both sides ahead of the midterm elections in the US. In November 2022, SBF revealed that he had been “supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC,” as well as “working with them to support permissionless finance.”
In 2020, SBF made the second-largest donation to former Vice President Joe Biden’s US presidential campaign. Following FTX’s bankruptcy in December, three prominent Democratic groups — the DNC, the Democratic Senatorial Campaign Committee, and the DCCC — have reportedly decided to return SBF-linked donations to FTX investors, which together exceed $1 million.
According to FTX attorney Andy Dietderich, the bankrupt firm had “recovered $5 billion in cash and liquid cryptocurrencies till now”. Apart from asking politicians to return back the contributions, FTX also plans to sell around $4.6 billion worth of non-strategic investments, which includes subsidiaries such as Embed, LedgerX, FTX Japan and FTX Europe to repay back its creditors.
The latest development also comes amid reports that the prosecutors probing former FTX CEO SBF have reached out to top members of the Democratic Party demanding information about the political donations made by the FTX founder.
Bankman-Fried, who stands accused on eight different counts, including wire fraud and campaign finance violations revolving around the alleged siphoning of $1.8 billion in customer funds, has pleaded not guilty to all charges.
