The FTX scandal exposed a major fraud that was allegedly targeting not only normal account holders but major institutions as well.
Last week, Sam Bankman-Fried, the former CEO was charged with multiple criminal counts by the US Attorney’s office.
Now FTX has made a surprising request of these politicians over concerns that it might not be able to pay bills through bankruptcy.
FTX calls on political campaigns and charities to return millions of dollars
Sam Bankman-Fried gave a lot of money to charities and Democrats’ political campaigns.
Now FTX is asking for the millions of dollars to be returned to the company.
In a company statement on December 19, they mentioned the groups that have already approached them as well as their interest in recouping more of the cash.
They explained some “recipients have requested directions for the return of such funds to the FTX Debtors.”
They said that these debtors are working “with these recipients to secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors.”
It seems that should be a major surprise to most people.
It’s really not everyday that any recipient of a large donation would willingly seek to return the funds.
However, they might have seen what is coming next for recipients that don’t return the funds.
FTX warns recipients of SBF’s donations to pay up or they would take “actions” in court
The statement went on to tell other organizations that if they received money from SBF or FTX then they should return the funds or face potential consequences.
They warned that if “such payments are not returned voluntarily, the FTX Debtors” would then take appropriate “actions before the Bankruptcy Court to require the return” of the money.
They even said these payments could include “interest accruing from the date any action” in court begins.
Earlier warnings may have put some of the politicians and charities on the offense.
The threat of legal action will force most to settle and return most or all the money.
There is still a larger question as to what SBF’s total contributions were, especially in the political arena.
He has been accused of contributing “tens of millions of dollars in illegal campaign contributions.”
Estimates based on public records show that Bankman-Fried donated approximately $70 million to politicians and charities during the 2021-22 election year.
It’s unclear at this time what the true extent of his donations were in the same period.
Biden administration still refuses to answer questions about $5.2 million they received from SBF
It should be noted that SBF was the second largest donor to Joe Biden’s campaign for the White House in 2020.
He donated a whopping $5.2 million dollars to the campaign according to The Wall Street Journal.
The Biden White House has been pressed on the issue several times since the collapse of the exchange in early November.
They’ve declined to answer.
On December 13, the White House Press Secretary, Karine Jean-Pierre dodged the question by referring to the Hatch Act and claiming to be “limited” on what she could say.
She said she simply “just can’t talk to political contributions or anything related to that.”
The Biden campaign might change their tune under threat of civil litigation.
That’s something most Americans would like to see.
Patriot Political will keep you up-to-date on any developments to this ongoing story.