FTX Demands Return of Funds Made by Former CEO SBF to Political Parties

• The statement released on Sunday, however, was more direct in its demand.
• Once worth $32 billion, FTX filed for bankruptcy last year.

After millions were sent to politicians and action committees by FTX’s founder and former CEO Sam Bankman-Fried (SBF) or others in his administration. FTX said Sunday that the insolvent crypto exchange wanted its money back.

Newly assigned to monitor the Chapter 11 bankruptcy of the FTX after its collapse in November, John J. Ray III had previously said that contributions associated with the exchange should be refunded.

Legal Action Otherwise

The statement released on Sunday, however, was more direct in its demand. That all “contributions or other payments” be returned by February 28. And in its reiteration of an earlier warning that legal action would be taken to recover any funds not returned voluntarily “with interest accruing from the date any action is commenced.”

The press statement claims that the FTX Debtors are communicating with politicians, PACs, and other receivers of donations covertly. Furthermore, the business reaffirmed that even if a receiver donates FTX-related monies to a third party, such as a charity. They are still responsible for repaying the company.

Once worth $32 billion, FTX filed for bankruptcy last year. After a sharp decline in the value of its exchange token FTT prompted a run on the exchange. And exposed that it did not have enough reserves of client money as it failed to satisfy withdrawals.

Federal authorities in the Southern District of New York eventually detained Bankman-Fried and accused him of eight monetary offenses including securities fraud, money laundering, and campaign finance violations. The fall of the FTX brought the crypto market to one of its toughest phases with several linked firms filing for bankruptcy or closing their doors.

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