FTX Asking Politicians to Return Donations
FTX has taken a significant step towards reclaiming the funds donated to various politicians by Sam Bankman-Fried for their respective campaigns.
The deadline for the return of these funds has been set for February 28th, 2023.
BREAKING: FTX is sending confidential letters to politicians who received donations from FTX to return the money they received.
— unusual_whales (@unusual_whales) February 5, 2023
The exchange has reportedly sent confidential letters to the recipients of the donations, informing them of the need to return the funds voluntarily.
If the payments are not returned willingly, FTX has the right to take legal action through the bankruptcy court to mandate the return of the contributions. Moreover, the recipients will also have to bear the interest costs that will accrue when any legal action is taken.
FTX is currently working towards tracking down hidden assets that could be used to repay creditors. In this pursuit, FTX’s advisors have been trying to recover funds that Bankman-Fried had given out inappropriately.
Apart from the funds donated to politicians, the bankrupt exchange has also been trying to recover the funds it contributed as scholarships to students in Florida.
A bankruptcy lawyer has opined that trying to reclaim the funds from the students could be considered a moral issue and that the decision to do so would ultimately lie in the hands of FTX’s lawyers. However, the lawyer has warned that the funds donated to mentor organizations could be subject to reclaim if the company cannot find the funds elsewhere.
Despite the bankruptcy, FTX’s CEO, John Ray III, remains optimistic about the future of the exchange and has been working tirelessly towards its revival. He has repeatedly stated that the business can be revived and has left no stone unturned in reinvigorating FTX.
You can see a list of the politicians FTX gave money to and the exact amounts here.