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

Bankman-Fried, founder and former CEO of FTX, made over $40 million in donations to mostly Democratic lawmakers and groups during the 2022 election cycle.

FTX wants this money back by February 28, warning recipients that a donation to a third-party charity “does not prevent FTX’s debtors from seeking a refund from the recipient or any successor in title.”

“If such payments are not returned voluntarily, FTX debtors reserve the right to file suit in bankruptcy court to seek the return of such payments, with interest accruing from the date any action commences,” FTX said in a press release. on Sunday.

Some recipients have already returned donations or have indicated their intention to return funds.

Officials from the Democratic National Committee, the Senate Democratic Party Committee, and the Congressional Democratic Party Committee said in December that they would delay donations from Bankman-Freed, pending government guidance on how to return the donations.

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, according to the Texas Tribune.

White House press secretary Karine Jean-Pierre cited the Luke Act, declining to comment on whether President Biden would return Bankman-Freed’s donations.

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

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

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

At the end of December, he was released on $250 million bail.


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