Collapsed crypto exchange FTX looks to claw back Bankman-Fried’s political donations
The collapsed crypto exchange FTX is looking to claw back the hefty political donations made by its founder Sam Bankman-Fried as its new management team tries to recover customers’ cash and repay a long list of creditors.
In a statement today, the firm said it had been approached by a number of recipients of “contributions or other payments” dished out by Bankman-Fried and other FTX affiliates, inquiring how they could repay the donations.
It comes amid fears that customers’ deposits on FTX had been used to fund the bumper donations made by Bankman-Fried over the past two years. SBF, as he is known, has donated nearly $45m since just before 2020, primarily to the Democratic party.
“The FTX Debtors are working with these recipients to secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors,” the firm said.
FTX said it was now invited the return of donations and payments but was poised to take legal action to recover payments if they did not cough up.
“To the extent such payments are not returned voluntarily, the FTX Debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced,” FTX said.
“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee.”
FTX has brought into emergency chief John Ray to oversee its bankruptcy proceedings in a bid to recover customers’ money.
Speaking with a House Committe on the collapse last week, Ray said the failure of FTX was a case of “old fashioned embezzlement”.