Bankrupt FTX Threatens To Sue Politicians Who Don't Return Donations
By Bill Galluccio
February 6, 2023
As new management at the bankrupt cryptocurrency exchange FTX tries to pay back its more than one million creditors, the company is targeting those who received political donations from its disgraced founder Sam Bankman-Fried and other employees.
In a statement, FTX said it would send confidential requests to political figures and political action committees that received donations, asking them to repay the contributions by February 28, 2023.
"To the extent such payments are not returned voluntarily, the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced," the company said.
According to the New York Times, FTX employees and others close to the company made about $90 million in political contributions. However, it is unknown how much of that money could be recouped in bankruptcy court.
Bankman-Fried is facing numerous allegations of fraud for allegedly stealing money from FTX's customers. Prosecutors said that he used their funds to prop up his failing hedge fund Alameda Research. They also claim he used about $40 million in stolen funds to make political donations to primarily Democratic candidates during the 2022 midterm elections.
Bankman-Fried has pleaded not guilty in federal court to eight counts of fraud and conspiracy.