By the 28th of February in 2023, the defunct cryptocurrency exchange FTX hopes to recover all of the political contributions that were made on its behalf at the behest of the FTX Debtors, the company’s former CEO Samuel Bankman-Fried (SBF), or other personnel.
Donation receivers should be aware that transferring a payment that they have received from an FTX contributor to a third party, such as a charity, does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee of the funds.
The FTX Debtors reserve the right to file actions before the bankruptcy court to demand the recovery of such funds if they are not returned willingly, with interest beginning to accrue on the day that any action is filed, and if the funds are not returned willingly, the FTX Debtors will exercise their right to file actions before the bankruptcy court.
The FTX debtors are reportedly investigating political payments of $93 million that were made between March 2020 and November 2022, as stated in court filings that were presented in January.
The Democratic National Committee announced in December that it will set aside more than one million dollars in cash related to FTX and return it at the discretion of bankruptcy attorneys, along with the party’s main Senate and House campaign committees. This decision will be made in conjunction with the Democratic National Committee.
SBF became one of the greatest contributors to outside political organisations after making a donation of a total of sixteen million dollars to super PACs in April of last year. In addition to this, he was one of the most generous supporters to Joe Biden’s presidential campaign, giving a total of $5.2 million.
Compiled by Coinbold