• FTX has sent confidential letters to all of its political beneficiaries, asking them to return donations made by Sam Bankman-Fried and other officers or principals of the FTX Debtors.
• The deadline for repayment is February 28, 2023. If not repaid, FTX will seek legal action with interest on the donated funds from the date of commencement.
• Political donations have been a major part of FTX’s success and have helped President Joe Biden’s campaign significantly with nearly $93 million worth of support.
FTX Asks Politicians To Return Donations
FTX Derivatives Exchange has sent confidential letters to all its political beneficiaries requesting repayment of funds donated under its former CEO Sam Bankman-Fried and other officers or principals of the exchange. The deadline for repayment is set at February 28th 2023, and if not met, legal action may be taken with interest on the donated funds starting from the date it commences.
Political Donations Under SBF Leadership
Political donations were a major factor in FTX’s success while it was still up and running, having contributed close to $93 million to President Joe Biden’s campaign among other choices candidates across political lines. With SBF no longer leading the exchange, they are now seeking legal action should any beneficiary refuse to make refunds as requested before February 28th 2023.
Voluntary Refund Requested in December 2020
In December 2020, FTX had already requested voluntary refunds from these political donors but this letter serves as a reminder that legal action may be taken if need be. This notice was pushed out shortly after bankruptcy proceedings began against the digital currency trading platform due to mismanagement issues under former leadership.
Actions Taken By FTX To Recoup Donations
FTX is taking every measure possible to recoup all donations made under its former leadership as well as any payments given by or at the direction of SBF himself or other officers/principals associated with his bankrupt business model. This includes seeking repayment even when donors have sent their donations off towards charities or third party benefactors instead of returning them directly back to FTX itself.
Conclusion
The crypto trading platform is committed to recovering these funds regardless whether they are returned voluntarily or through legal means; however it remains uncertain whether these beneficiaries will decide adhere to their request before their set deadline on February 28th 2023.