FTX has urged all political candidates and organizations who have received donations from its former CEO Sam Bankman-Fried and other executives to return these funds before the end of February.
What Happened: In a press release, FTX said it is sending confidential notices to political figures, political action groups and other recipients of funds related to donations and payments made by the crypto exchange prior to its bankruptcy filing in November.
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The FTX debtors are currently reviewing a total of $93 million in political contributions made between March 2020 and November 2022, as indicated in court documents filed in January.
Why It Matters: Bankman-Fried primarily donated to Democrats, making him their second-largest donor with a staggering $37 million in contributions. Former FTX Co-CEO Ryan Salame followed close behind, donating $19 million to Republicans and earning him a place as the party’s 10th largest donor.
FTX is requesting that any funds it previously issued in December be returned no later than Feb 28. Given that some recipients may not return the funds voluntarily, FTX is reserving its right to take legal action and file a complaint to the Bankruptcy Court if payments are not returned, with additional interest paid from the date of initiating such actions.
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