Hey Peeps!
On February 5th, FTX published a press release that officially requests the return of all political donations made under the direction of former FTX CEO Sam Bankman-Fried.
SBF appears to have used company, and quite possibly customer, funds to donate to specific political candidates and Political Action Committees, also known as PACs.
The formal request made by FTX also sets a firm deadline for the donations to be returned by February 28th.
FTX states that if the donations are not returned, then "the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced".
This is essentially a threat to all recipients that if they do not return the donations, they may be sued to recover the funds and will even owe interest on those funds.
"FTX, and its affiliated debtors, today announced the FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors. These recipients are requested to return such funds to the FTX Debtors by February 28, 2023."
- FTX Press Release
FTX is not showing mercy to anyone as they are asking all other recipients of donations, including charities and other non-political organizations, to return the money they received.
Some politicians made a point to take those FTX donations and then also donate those amounts to nonprofits and charities of their choice.
However, FTX states in their press release "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".
In other words, FTX is saying it does not matter if you donated those funds to another charitable organization, you still owe them.
It is not entirely clear how much Sam Bankman-Fried may have donated all together, but so far at least $30 million has been tracked by OpenSecrets.org.
I recommend giving this website a visit as it is a nonprofit that monitors the money being used in U.S. politics.
What are your thoughts about this news?
Do you think FTX is justified in asking for the donations to be returned?
Would you return donations made to you by FTX if you were a politician?
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