The new leadership of FTX has hinted that it will endeavor to recover funds that disgraced ex-billionaire Sam Bankman-Fried and his close colleagues fraudulently channeled to other businesses, including a fortune in campaign contributions.
The Wall Street Journal reported on Tuesday that new FTX CEO John Ray and the company’s other caretakers had received requests from various receivers who wish to return the funds.
The bankrupt corporation demanded the restoration of funds taken from Bankman-Fried and other FTX executives.
FTX stated in a statement, “To the extent that such funds are not returned willingly, the FTX debtors intend to file actions with the bankruptcy court to seek the return of such payments, with interest accumulating from the date any action is filed.”
Prior to the bankruptcy of FTX, Bankman-Fried made at least $40 million in political contributions to Democratic candidates and political action committees.
At least $40 million was contributed by Sam Bankman-Fried to Democratic candidates and political action committees.
AP
In addition, he funded media sources such as Vox, ProPublica, and Semafor, as well as non-profit organizations such as Guarding Against Pandemics, an organization managed by his brother, Gabe.
The federal government has accused Bankman-Fried of misappropriating billions in FTX customer monies. Allegedly, Bankman-Fried used the funds to prop up his failing cryptocurrency trading firm, Alameda Research, and for personal use, including a slew of political contributions and real estate acquisitions.
During the midterm election campaign, Bankman-Fried was the Democratic Party’s second-largest donor, after only billionaire George Soros.
The Wall Street Journal reported that some of the organizations that received funding from FTX, such as the organization Protect Our Future, which focuses on pandemics, and the conservative American Dream Federal Action, have already spent the majority of the monies. The two organizations did not react to the publication’s request for comment.
Bankman-Fried and other FTX executives collectively contributed at least $73 million to political causes. The majority of Ryan Salame’s $23 million donation went to Republican politicians and organizations.
Recent court documents in the Bahamas revealed that Salame defected on Bankman-Fried two days before to the company’s insolvency, informing local regulators that FTX had used customer assets to “cover financial losses” at Alameda.
Tuesday, ProPublica announced in an internal memo that it will return $1.6 million that Bankman-Fried had donated through his family foundation.
John Ray is the new chief executive officer of FTX.
The memo stated, “Given the current investigation into Bankman-behavior, Fried’s and with the approval of our board, we have placed the $1.6 million to a separate account until a bankruptcy judge or other legal authority determines where the money should be returned.”
This month, the co-founder of Semafor, Justin B. Smith, stated that the publication would “allow the various government authorities” to choose “how to best manage” Bankman-investment Fried’s in the publication. Earlier, Semafor was scrutinized for not stating if it intended to repay the money.
»FTX is attempting to recover Sam Bankman-campaign Fried’s contributions«