Before his FTX empire collapsed last November, Sam Bankman-Fried lavished politicians with tens to millions of dollars in campaign donations. The bankrupt crypto exchange now wants the money back.
Sunday’s statement by FTX Group stated that it was sending confidential letters to politicians, other political beneficiaries of Bankman Fried, his deputies, and his companies asking them to return the money before the end of the month. In a press release The debtors stated that they “reserved the right” to force repayments, plus interest, through court action.
According to debtors, the announcement intensifies a battle over $93 million in political donations FTX to a variety of D.C. legislators and causes across all political spectrums. According to CoinDesk reporting, one in three U.S. Congress members received contributions from Bankman-Fried. It was an enormous influence campaign that transcended party lines.
Many of the FTX’s top officers are now facing criminal charges for alleged fraud that cost them multibillions of dollars. Many of their beneficiaries tried to get rid of the scandal by making similar donations to charities. However, the debtors charged with recouping creditors’ losses have warned that such actions “do not stop the FTX Debtors seeking recovery.”