FTX is taking legal action to recover debt from the company and former employees. FTX is considering a lawsuit over the non-return of donations by political parties.
Cryptocurrency exchange FTX says it is considering legal measures to recover debts and donations such as political donations. These awards are made by affiliated companies and ex-employees. These include the millions given to politics by Sam Bankman-Fried, who served as the former chairman of FTX.
The currency exchange released a newsletter on Dec. 19 in which he said that FTX had already entered “many recipients of gifts or other payments.” In addition, these companies have requested “instructions for the return of these funds”.
How Do Political Donations Work?
Last week, three major Democratic groups pledged to refund more than $1 million in political contributions made by Bankman-Fried. This is in response to SBF’s arrest and indictment on December 16.
The White House press secretary was also asked on December 13 if the Biden administration would return the $5.2 million donation to SBF. However, the spokesperson chose not to respond.
In a recent statement, FTX urged investors to “arrange for the return of these payments.” The exchange also said it will take legal action if the money is not returned for free. Legal experts previously warned that up to $73 million in political debt of FTX could be recovered to satisfy the alleged one million creditors.
Remember that FTX has investors with between 10 and 50 billion dollars. To separate themselves from the revolution and its employer, some members of the US Congress volunteered. Also, Fried’s attorney said he will challenge the dismissal.
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Development of The Court
Chaos reigned in the open court. Bankman-Fried, 30, looked stunning in a light blue dress and white button-down shirt. Jerone Roberts, her Bahamian lawyer, expressed disbelief that Bankman-Fried would appear in court.
Both the New York Times and the Washington Post reported, citing Roberts, that Bankman-Fried agreed to the release after the trial ended. According to Mr Roberts, “we as lawyers have to prepare the documents needed to make the court work”.
Bankman-fried Before Failure
With $36.6 million sent to Democratic Party candidates for the 2022 midterm elections, Bankman-Fried can be considered the second largest donor. He also gave $5.2 million, making him the second highest “Major Contributor” to Joe Biden’s 2020 presidential campaign in the United States.
In an interview with cryptocurrency YouTuber Tiffany Fong on Nov. 16, the FTX CEO said that he “gave two sides pretty much one,” but his contribution to the Republicans was “bad.”
