FTX New Management make Deadline to Recover Political Donations by Feb End

FTX new leadership under John Ray III is approaching political groups to recover funds donated by Sam-Bankman-Fried (SBF) and his deputies.

The new CEO Ray management had decided to get it done by this month’s end, according to a report on February 2, 2023. Former CEO and co-founder of defunct exchange SBF was among the top 10 “significant political donors’ ‘ in the U.S. midterm elections 2022, according to the Washington Post Analysis of Federal Election Commission data.

Sam in May last year, declared to donate $100 million in the 2024 presidential election, displaying his philosophy of “effective altruism.” Since December 2022, Ray’s team has been trying to claw back funds from charities, celebrities and politicians, as the company is proceeding with legal matters.

The reporters on February 5, 2023 stated: “FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the “FTX Debtors”), today announced the FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors (collectively, the “FTX Contributors”). These recipients are requested to return such funds to the FTX Debtors by February 28, 2023.”

Back in mid-January this year, FTX attorney Andy Dietderich said that the FTX “recovered $5 billion in cash and liquid cryptocurrencies.” Whereas, the bankrupt crypto exchange at present is “working to rebuild transaction history.” with the overall funds of customers remained foggy.

According to The Guardian, the company’s new management wrote in an email ([email protected]) last year: “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.”

On December 12, 2022, Sam was arrested at his home in Nassau, Bahamas at the request of the U.S. government. He was being charged with fraud allegations. The U.S. attorney Damian Williams called it as “one of the biggest fraud in American history.” After which, Sam was sent to FOX Hill prison, later extradited to the U.S. Thereafter, he was granted bail on a $250 million bond agreement.

Donations by Sam’s deputies, such as Gary Wang, Ned Segal to political parties and others are now under the eyes of federal authorities. The legal documents by the court shows that FTX debtors had donations stats of $93 millions between March 2020 to November last year.