Political figures or individuals or entities that received donations from Sam Bankman-Fried or an FTX executive must return them by February 28, 2023. This is the decision of FTX and its debtors, who have even sent confidential messages to those involved. If the debtors fail to pay voluntarily by the deadline, FTX reserves the right to take the matter to court.
Return donations or go to court
FTX is seeking to recover all funds paid to third parties as donations by its former CEO Sam Bankman-Fried. In a statement issued on February 5, FTX and its affiliated debtors call on politicians and other recipients of contributions made by Samuel Bankman-Fried to return them. FTX claims that confidential messages have been sent to the individuals concerned.
Recipients of Sam Bankman-Fried’s donations have until February 28, 2023 to repay them. To do so, they should contact FTX debtors by email via FTXrepay@ftx.us for practical repayment arrangements. FTX insists that donations must be returned, even if they were donated to charity. In particular, this is what some recipients of SBF donations promised to do following the FTX collapse.
Those who have not voluntarily returned the donations by the due date will be sued by the platform and will have to return them with interest.
To the extent that such payments are not voluntarily returned, FTX debtors reserve the right to bring actions in bankruptcy court to demand the return of such payments, with interest accruing from the date the action is brought.
FTX
Who are the recipients of the donations claimed by FTX?
A list of the recipients of Sam Bankman-Fried’s donations has not been disclosed by FTX. However, communications from various actors since the collapse of FTX give an idea of the scope of SBF’s donations and the identity of their beneficiaries.
Several sources have confirmed that the US political sphere has benefited greatly from these. According to a CoinDesk investigation, 196 elected officials in the 118th US Congress received a donation from the former FTX CEO. That’s more than a third of the U.S. Congress that took office on January 3. The majority of SBF’s donation recipients are from the Democratic Party. However, a few elected Republicans have also benefited from SBF funds.
Last December, some political figures and platforms officially renounced Sam Bankman-Fried’s donations because of the fraud and money laundering charges against the donor. The New York attorney general had even called on other political actors to do the same. According to Coindesk, 64% of 53 lawmakers who received SBF donations were in favor of returning them.
Will the recipients of SBF donations return the money to FTX? It is difficult to answer this question at this time…. So we’ll probably have to go with what U.S. law says about donations. If there are any people who are entitled to have their funds returned, it is FTX’s clients!
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