All of the political class, including all who are linked politically in any way and who happened to have received donations related to the now defunct crypto exchange FTX, have been asked to return the entire amount, at the latest by February 28, 2023. In this regard, it happens to be the FTX debtors who are engaged in issuing notices to receivers of the FTX-related donations that were earlier made.
In addition, lawyers are currently reviewing an enormous amount of $93 million that appears to be involved in the form of contributions made to politicians and political groups by the company’s former CEO, Sam Bankman-Fried, and other employees. This is closely linked to the ultimate bankruptcy of the FTX.
The donations were made between March 2020 and November 2022. This happens to be with respect to the documents that have been duly filed in the courts. As per another criminal case, Sam Bankman has denied all charges against him.
The process, however, of returning the amounts received as political donations has already begun to a certain extent. In this context, the Democratic National Committee and the Senate and House campaign committees announced in December that they were holding over $1 million in cash linked to FTX, which will be released immediately following the bankruptcy lawyers’ orders.
In the case of a few individual lawmakers, the ones who were in receipt of donations in the form of FTX made their move by making their donations in favor of charity. However, where the FTX is concerned, the bankruptcy lawyers claim they will still be pursued for the return of the money received.
Following this, it has been made categorically clear that the money needs to be returned to the FTX debtors, and giving it away to any form of third party will not at all be acceptable.
It has been understood that at the very beginning of the year 2021, it happened to have been the former CEO of The Block, Michael McCaffery, who received a string of loans from Sam Bankman-Fried. He, however, gave in his resignation, following the fact that he had not disclosed the information.