FTX debtors seek to recover millions of dollars given to US political action committees (PACs) and political figures. Confidential letters have been sent to individuals and organizations requesting the return of the funds by February 28, 2023. Some bureaucrats, like Democratic Sens. Joe Manchin and Tina Smith, have already pledged the funds to charity. It is unclear if the law will require them to return the funds to the now-bankrupt FTX estate.
US Political Elite Under Pressure to Pay FTX Contributions Before Deadline
It is widely recognized that legislators in Washington, DC and political action committees in the US received significant funding from FTX, its co-founder Sam Bankman-Fried (SBF) and senior executives. Estimates indicate that SBF and the FTX team donated approximately $90 million to US bureaucrats and political organizations since the inception of the exchange. For example, SBF and former FTX executives Nishad Singh and Ryan Salame donated approximately $70.1 million to the Democratic and Republican parties for the 2022 midterm election cycle.
A press release, dated February 5, states that FTX’s debtors intend to recover funds distributed among Washington, DC’s political elite. The announcement reads: “FTX debtors are sending confidential messages to political figures, political action committees, and other recipients of contributions or payments made by or at the direction of FTX debtors, Samuel Bankman-Fried, or other officials.” It also states that “recipients are requested to return funds to FTX debtors by February 28, 2023.”
FTX debtors specify that funds can be returned via a designated email account on the specified date. The bankrupt estate affirms that it reserves the right to “initiate actions in bankruptcy court to demand the return of these payments, together with the interest accrued from the date of initiation.” In addition to the FTX debtors’ press release, the “Unusual Whales” Twitter account published a list from US bureaucrats and political action committees believed to have received funding from SBF and top FTX executives.
“There was no list of the politicians they gave money to, and the amounts, until now,” tweeted Unusual whales. Information can be verified through the US Federal Election Commission (FEC) and Coindesk’s investigationwhich estimates that one in three members of Congress received funding from SBF or senior FTX staff.
Before the press release and the publication of the list of US politicians who accepted funds from FTX leaders, some bureaucrats chose to redirect donations to charity. For example, Republican Senators John Boozman and Bill Cassidy Announced your intention to donate the funds to charity. Democratic Senators Joe Manchin and Tina Smith also donated funds to specific charities after the FTX collapse.
Smith, a Democrat from Minnesota, told the media that she had “serious concerns about cryptocurrency and the financial risks it poses to retail investors.” However, during the election cycle, Minnesota Rep. Angie Craig and Sen. Tina Smith had no problem accepting $2,900 each before the trade fell through. It is unclear who led these politicians or why they chose to donate the funds to charity rather than return them to the bankrupt mass, who owe billions to the retail investors these bureaucrats say they care about.
What do you think about the movement by FTX debtors to reclaim funds from US political figures and action committees? Let us know what you think about this topic in the comments section below.
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