• FTX Group is requesting that politicians who benefitted from their donations in the 2022 midterm election cycle return the funds.
• The exchange and its affiliated debtors are sending confidential letters to recipients of their political contributions, expecting repayment by February 28th, 2023.
• FTX estimates that up to $93 million could be returned if related parties agree to repay or are forced to do so by the Bankruptcy Court.
FTX Requests Return of Donations
FTX Group is requesting that politicians who received hefty donations during the 2022 midterm election cycle return the funds. The exchange and its affiliated debtors are sending out confidential letters to all recipients of their political contributions, expecting repayment by February 28th, 2023. If related parties refuse to repay voluntarily, they may be forced to do so by the Bankruptcy Court with interest accruing on what they owe once legal action begins. FTX estimates that up to $93 million could be returned if these conditions are met.
SBF’s Political Beneficiaries
The request follows Sam Bankman-Fried’s donation of tens of millions of dollars during the 2022 midterm election cycle. At least 196 members of Congress have been identified as having received donations from FTX, including House Speaker Kevin McCarthy (R-Calif). Other prominent beneficiaries include Representatives Alexandria Ocasio-Cortez (D-NY), Lauren Boebert (R-CO), Marjorie Taylor Greene (R-GA) and Josh Hawley (R-MO).
In December 2020, FTX announced arrangements for recipients of their funds to voluntarily return them. According to their press release on Sunday, those who accept repayment must do so by February 28th or risk being brought before the Bankruptcy Court for further action.
If successful in recovering all payments made at Sam Bankman-Fried’s direction, FTX will have a better chance at finding financial stability after bankruptcy proceedings began last year due to a drop in cryptocurrency prices and increasing competition within the industry. Additionally, future recipients may think twice before accepting large donations from companies such as FTX going forward if they know they could be asked to pay it back later on down the line due to bankruptcy proceedings or other situations like this one..
FTX is currently taking action against recipients of its political contributions in order for them to return what was given during the 2022 midterm election cycle. If successful in recovering all payments made at Sam Bankman-Fried’s direction, this could help stabilize their financial situation as well as serve as a warning for future donors and receivers alike about taking such generous offerings from companies like FTX in case similar circumstances arise again down the line.