FTX seeking return of Sam Bankman-Fried’s political donations

Bankman-Fried, the founder and former CEO of FTX, donated more than $40 million to mostly Democratic lawmakers and groups during the 2022 election cycle.

FTX wants the money back by Feb. 28, warning recipients that donating to a third-party charity “does not preclude FTX creditors from seeking recovery from the recipient or any subsequent transferees.” “

“To the extent that such payments are not voluntarily repaid, the FTX Debtors reserve the right to commence proceedings before the Bankruptcy Court to require the return of such payments, beginning on the date such proceedings are commenced. with interest,” FTX wrote in a press release. on Sunday.

Some recipients have already returned donations or announced their intentions to return the funds.

Officials with the Democratic National Committee, the Democratic Senatorial Campaign Committee, and the Democratic Congressional Campaign Committee said in December that they would set aside Bankman-Fried’s donations pending government guidance on how to return the donations. .

According to the Texas Tribune, former Texas Democratic gubernatorial candidate Beto O’Rourke’s campaign returned a $1 million check from Bankman-Fried a week before FTX filed for bankruptcy.

Sam Bankman Freud donated up to $40 million to mostly Democratic lawmakers.
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White House Press Secretary Karen Jean-Pierre declined to comment on whether President Biden would return Bankman Freud’s donations, citing the Hatch Act.

Bankman-Fried also donated an estimated $262,200 to Republican candidates.

FTX Digital Markets co-CEO Ryan Salame reportedly donated $20 million to Republicans during the 2022 election cycle.

Sam Bankman Freud leaves Manhattan Federal Court after his arrest and bail hearing.
Sam Bankman Freud leaves Manhattan Federal Court after his arrest and bail hearing.
Getty Images

Bankman-Fried was arrested in the Bahamas in December and extradited to the United States, where she faces multiple charges, including campaign finance violations, wire fraud, conspiracy to commit securities fraud, and money laundering. Conspiracy to commit and other counts included.

He was released on $250 million bond in late December.


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