Bankruptcy Threatens $75M In FTX Political Contributions
Some politicians have already resorted to donate the money they got from the FTX to charitable organizations in an effort to dissociate themselves from the unsuccessful exchange.
According to a report by Bloomberg, after the failure of FTX and the subsequent declaration for bankruptcy on November 11, the company's political contributions totaling $73 million are presently at danger of being returned in order to reimburse the failing exchange's creditors.
Online speculators have speculated that the previous CEO of FTX and his executives attempted to influence industry rules by making large gifts to politicians and super PACs. These donations were reportedly in the millions of dollars.
Sam Bankman-Fried, along with executives Ryan Salame and Nishad Singh, is suspected of being a high-paying contributor to both the Republican Party and the Democratic Party in the United States.
Many politicians who were the beneficiaries of FTX's generosity are now in a tough position about what they should do next, since it is possible that they may be required to repay the money to the trustee of the bankruptcy.
Some politicians have already resorted to give away their wealth in attempt to dissociate themselves from the disgraceful trade.
According to Bloomberg, both Hakeem Jeffries, the chairman of the Democratic caucus in the House of Representatives, and Dick Durbin, a member of the Democratic leadership in the Senate, have already contributed some of the money they got from FTX to charitable organizations.
The Salvation Army was the recipient of the $11,600 that Republican Senator John Hoeven of North Dakota gave out after receiving it from SBF and Salame.
In spite of the greatest efforts these politicians have made to separate themselves from FTX, they still run the risk of having to hand up their money to the trustee in charge of the bankruptcy.
Ilan Nieuchowicz, a lawyer at Carlton Fields, believes that one of the most important deciding elements is whether or not the court concludes that there was "fraud" or "fraudulent" intent involved in the collapse of FTX.
If it were established that most of the contributions were connected to the unsuccessful exchange, then those funds may potentially be recovered.
Some people were calling Sam Bankman-Fried the "new George Soros" prior to the abrupt collapse of FTX; he had purportedly committed to give an extra $1 billion to the presidential election cycle in 2024.