- Summary:
- Former crypto giant FTX Exchange is seeking a return of $93 million campaign donations that it made to US lawmakers.
Former crypto giant FTX Exchange is seeking a return of campaign donations that it made to US lawmakers. Since the initiation of the bankruptcy proceedings, the bankruptcy lawyers have been examining approximately $93 million in political donations. These donations were made between March 2020 and November 2022. Consequently, FTX has requested that political figures and organizations return any donations linked to Bankman-Fried and other executives by the close of February.
FTX has already sent confidential notices to political figures, political action groups, and other recipients of contributions and payments. Some political groups are already taking steps to return the money, including the Democratic National Committee. It has also come to light that some lawmakers who received political donations from FTX crypto have transferred the money to charity.
Official Statement From FTX Exchange
FTX warned that bankruptcy lawyers are still seeking to recover the funds despite these efforts. The exchange stated that making a payment or donation to a third party, including a charity, in the amount of any payment received from FTX does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee.
Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee,
FTX Exchange
FTT Crypto Price Chart
FTT coin was the native token of the whole FTX ecosystem. Since the fall of the FTX crypto exchange, the coin has lost 92% of its value. Many platforms have delisted the FTT trading pairs considering it a risky investment. Such measures have drastically reduced the liquidity in the market.
FTX exchange is going through bankruptcy proceedings over accusations of embezzlement by its co-founders Sam Bankman-Fried and Gary Wang. It is believed that the funds were misused for personal purposes. Bankman-Fried has pleaded not guilty to any of the criminal charges made against him. SBF trial is scheduled to begin in October 2023. The result of FTX bankruptcy is still unclear and could have consequences for both users and the crypto industry as a whole.