Bankrupt Crypto Exchange Demands Politicians Return Donations From Alleged Fraudster Sam Bankman-Fried

FTX former CEO Bankman-Fried appears at Manhattan federal court in New York City

Bankrupt Crypto Exchange Demands Politicians Return Donations From Alleged Fraudster Sam Bankman-Fried

Nino Cambria on February 6, 2023

Bankrupt cryptocurrency exchange company FTX is requesting that all politicians who accepted donations from disgraced former CEO and founder Sam Bankman-Fried return them by the end of the month, according to a company press release.

Bankman-Fried contributed over $40 million in donations to mostly Democratic politicians during the 2022 election cycle just before FTX and its sister company, Alameda Research, filed for Chapter 11 bankruptcy in November over a liquidity crunch, according to a Bloomberg report. FTX made the request in order to pay off debts to its creditors; the exchange first tried to reclaim their donation money back in December but have now given the deadline of Feb. 28.

“To the extent, such payments are not returned voluntarily, the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced,” according to an FTX press release.  The crypto exchange company added that recipients can not simply give the money to charities, stating this does not “Prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee.”

Some notable politicians that received contributions from Bankman-Fried include Democratic senators Dick Durbin of Illinois, Kirsten Gillibrand of New York, Joe Manchin of West Virginia and Debbie Stabenow of Michigan, as well as Republican senators John Boozman of Arkansas and Katie Britt of Alabama, according to the Associated Press. Durbin, Gillibrand, Stabenow, and Boozman have previously announced their plans to donate the money to charity or return it to FTX, according to AP.

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Manchin has already donated his contribution. “On November 18th, Senator Manchin donated the $5,800 online campaign contribution from Sam Bankman-Fried to Mountaineer Food Bank in West Virginia,” Sam Runyon, Manchin’s communications director, said in a statement to the Daily Caller News Foundation.

Bankman-Fried was arrested in the Bahamas and extradited to the U.S. in December following charges of wire fraud, conspiracy to commit securities fraud, campaign finance violations and conspiracy to commit money laundering, among other charges, according to a Department of Justice (DOJ) press release. He is currently out on a $250 million bond granted in late December.

The offices of Senators Durbin, Stabenow, Gillibrand, Boozman and Britt did not immediately respond to the Daily Caller News Foundation’s request for comment.

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