- The exchange wants the money back by the end of February 2023
- FTX donated $93 million to a number of DC legislators and causes
Politicians from both the Republic and the Democratic Party in the US received generous financing from ex-FTX CEO Sam Bankman-Fried before his empire collapsed. Now, the crypto exchange’s new executive leadership wants the money back, CoinDesk wrote.
On Sunday, it was reported that FTX Group was mailing “confidential letters” to beneficiaries of the disgraced former CEO, including many politicians. The exchange wants the money back by the end of February 2023. According to the debtors, they have the right to take legal action and force recipients to repay the funds, including any interest accrued.
Political donations amounted to $93M
Debtors estimate that FTX donated as much as $93 million to a number of DC legislators and causes covering the whole political spectrum. The magnitude of this influence campaign startles now that former top executives of FTX are facing a host of criminal charges, including purported multibillion-dollar fraud.
Some politicians pledged to donate the money to charities to disassociate themselves from the scandal. However, FTX has stated that this wouldn’t stop the debtors from seeking recovery of the funds.
Almost 200 politicians took cash
According to a CoinDesk investigation,196 politicians took cash from senior FTX executives, including Sam-Bankman Fried himself. The exchange filed for bankruptcy in November in Delaware. The names of beneficiaries run the gamut of both chambers and include Democrat Chuck Schumer, who is Senate Majority Leader, and Republican Kevin McCarthy, Speaker of the House of Representatives.
CoinDesk contacted the 196 legislators to inquire what their plans involving the money were. Apart from saying they’d donate to charities, some assured they had talked to representatives of the US Department of Justice. They had agreed to set the money aside until it could be transferred to a fund in support of the victims of the exchange.
Among other charges, Bankman-Fried has been accused of violating campaign financing laws.
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