In a press release on Sunday, the caretakers of the bankrupt FTX estate announced they were sending confidential messages to politicians, political action funds and other recipients of contributions made by the exchange and its former leadership, including founder Sam Bankman-Fried. Request a refund.
Prior to its collapse, FTX was a prolific source of political donations, both from the company itself and its cadre of executives. In a document released in mid-January by the FTX estate, lawyers estimated that the company and its employees had spent $93 million on contributions, which are now under review.
Part of the company’s success came from its prodigious lobbying efforts in Washington, which took the form of both donations and frequent visits to the capital by Bankman-Fried. According to a CoinDesk report, one in three members of Congress received donations from FTX executives, with Bankman-Fried contributing at least $40 million over the past two years.
Although she gave most of that money to Democrats, Bankman-Fried claimed she donated a similar amount to Republicans as a “dark money” contribution, so that journalists could not trace the transactions, and, as that he had kept it. A podcast, “Freak the Fuck Out.”
In the wake of FTX’s collapse, many politicians who received donations from FTX and its employees tried to distance themselves from the company, including giving money to other charitable causes.
As part of the bankruptcy process, however, there has been widespread speculation by experts that the estate will “return” the money or requisition to anyone receiving money from FTX – whether through political donations or venture funds. Be in the form of – The amount of money to be distributed among the creditors of the estate to be sent.
In response to this, some politicians have gone as far as donating their contributions to FTX, rather than set them aside in case of potential clawbacks. Complicating matters, it is unclear who fell into the FTX orbit. Sam Bankman-Fried’s brother Gabriel, for example, was also a prolific philanthropist, as were others associated with the infamous founder.
As a result, there have been allegations that Bankman-Fried used “straw donors”, or an illegal form of campaign contribution where a person donates through other parties. When the US Justice Department charged Bankman-Fried in December, the eight-count indictment included alleged violations of federal campaign finance laws.
long awaited action
The language of Sunday’s press release from FTX was sparse and did not specify who was considered part of the company’s umbrella, instead directing the parties to receive funds donated by “officers or principals of FTX.” . [contributors],
The letter provided an email address that potential recipients could contact to begin the process of refunding the money, and stated plans to initiate court procedures to require the return of payments if the recipients did not comply. The rights of will be protected.
Politicians are still highlighting the scandal, especially as Washington begins a congressional session with crypto regulation at the top of the agenda. With Bankman-Fried who previously served as one of the main advocates of a promising bill on the Senate Agriculture Committee, the crypto industry now appears to be lacking a champion of similar influence following her arrest.
With FTX’s operations surrounded by a web of shell companies and dark money contributions, the long-awaited action by the debtor’s union will begin to shed light on the extent of the company’s activity in Washington. Two more hearings in the bankruptcy proceedings are scheduled for later this week, including the possible appointment of an independent examiner.
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