• FTX Group is asking political figures and funds who received donations from the company to return them by February 28th, 2023.
• The amount of money owed may be up to $93 million, which would include payments made at the direction of Sam Bankman-Fried or other officers or principals of FTX Debtors.
• At least 196 members of Congress have received donations from the exchange giant, including House Speaker Kevin McCarthy (R-Calif).
FTX Requests Return of Donations
FTX Group has released a statement requesting that all political figures and political action funds who once benefitted from their hefty donations return the money by February 28th, 2023. It is estimated that this could add up to as much as $93 million in repayment. This figure includes payments made at the direction of Sam Bankman-Fried or other officers or principals of FTX Debtors.
Recipients Must Repay Donations
The press release states that if related parties refuse to repay what they owe, they may be forced to do so by the Bankruptcy Court with interest accruing on what they owe once legal action begins. Among those identified as having received donations from the exchange giant are 196 members of Congress, including House Speaker Kevin McCarthy (R-Calif).
FTX’s Contributions During 2022 Midterm Election Cycle
During the 2022 midterm election cycle, Sam Bankman-Fried donated tens of millions of dollars to politicians throughout the United States. Now that his former company has declared bankruptcy, it is no longer able to support these efforts and must recoup its financial losses through collecting repayment from those who benefitted from its generosity previously.
Impact on Political Figures Receiving Donations
This process will have an impact on politicians who once enjoyed generous support from FTX’s contributions during their campaigns and election cycles. As such, many candidates may now need to find alternative ways for fundraising should their repayment request be granted by FTX Group and its affiliated debtors when due later this year.
In conclusion, FTX Group has requested that recipients of its previous political contributions return any funds they had received before February 28th in order for them to recoup their financial losses incurred during bankruptcy proceedings this year. This includes 196 members of Congress who had been identified as having received donations throughout the 2022 midterm election cycle alone – something which will likely affect their future fundraising efforts should repayment requests be granted when due later this year