FTX Demands Return of Sam Bankman-Fried Political Contributions

Bankman-Fried, the founder and former CEO of FTX, donated more than $40 million to mostly Democratic lawmakers and groups during the 2022 election cycle.

FTX wants that money back by February 28, warning recipients that a donation to a third-party charity “does not prevent FTX debtors from seeking recovery from the recipient or any subsequent recipient.”

“To the extent that such payments are not voluntarily returned, FTX Debtors reserve the right to file suits in bankruptcy court seeking repayment of such payments, accruing interest from the date of filing,” FTX wrote in a press release Sunday .

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

Officials with the Democratic National Committee, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee said in December they would set aside contributions from Bankman-Fried while they await government instructions on returning the donations.

Former Democratic Texas gubernatorial nominee 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 Hatch Act by refusing to comment on whether President Biden would return Bankman-Fried’s donations.

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

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

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

He was released on a $250 million bond in late December.

Fox