Bankrupt crypto exchange FTX is asking politicians and political action committees to return donations made by the company employees by the end of the month, or wait for a judge to order it back.
FTX said Sunday that is contacting anyone who received payments made by the company’s ex-CEO Sam Bankman-Fried, other FTX executives, or any of the affiliated companies that have filed for bankruptcy. It’s not a small amount of money, either: It’s estimated that the donations add up to as much as $90 million, per The New York Times. The debtors are trying to claim the money back to reimburse customers.
According to CoinDesk, over a third of the lawmakers in the current Congress have some FTX-associated donation on their campaign ledgers, including Rep. Nancy Pelosi and House Speaker Kevin McCarthy.
After FTX was revealed to be allegedly defrauding investors and customers, many lawmakers chose to wipe their hands clean by donating the contributions elsewhere. Only five members of Congress returned the money to FTX as of mid-January, while several others said they were standing by for further instruction.
With the release of the new statement, FTX is requesting the money to be returned by February 28. FTX has warned that beyond that date, donation recipients could be taken to the bankruptcy court.
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Market Recap Week of 1/30/2023 Through 2/03/2023