FTX requires politicians to return donations
On February 5th, the bankrupt crypto empire FTX announced that it has asked politicians to return money that the firm had donated. FTX has "sent confidential letters" to politicians and other political beneficiaries of Bankman-Fried, his deputies, and his companies, demanding the return of the donations.
This recent development is part of the company's efforts to repay its creditors. "FTX debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments made by FTX debtors, Sam Bankman-Fried, or other officers or principals of FTX debtors (collectively referred to as 'FTX Contributors') or at their direction. These recipients are asked to return such funds to FTX debtors by February 28, 2023," the official statement said.
Sam Bankman-Fried previously admitted to making contributions to both sides of the US midterm elections. In November 2022, SBF stated that he "supported constructive candidates across the aisle to prevent pandemics and create a bipartisan climate in Washington" and "worked with them to support unrestricted funding."
In 2020, SBF made the second-largest contribution to the presidential campaign of former Vice President Joe Biden in the US. After FTX's bankruptcy in December, three prominent Democratic groups—the DNC, the Democratic Senatorial Campaign Committee, and the DCCC—reportedly decided to return FTX investors' donations associated with SBF, which collectively exceed 1 million dollars.
According to FTX's lawyer, Andy Dittderich, the bankrupt firm has "already returned 5 billion dollars in cash and liquid cryptocurrencies." In addition to reaching out to politicians to return the contributions, FTX also plans to sell non-strategic investments worth about 4.6 billion dollars, including subsidiaries like Embed, LedgerX, FTX Japan, and FTX Europe, to repay its creditors.
This recent event also comes amid reports that prosecutors investigating former FTX CEO SBF have sought information on political donations made by FTX's founder from high-ranking members of the Democratic Party.