- FTX aims to recoup all of its past political donations.
- The FTX debtors were assessing a total of $93 million worth of donations
FTX aims to recoup all of its past political donations by the end of February, through a comprehensive strategy. This move is part of their larger effort to increase transparency and accountability when it comes to political contributions.
In order to achieve this, they are also taking steps such as making sure that every donation is properly documented and reported. As well as engaging with campaign finance experts to ensure that all regulations are being followed.
According to a Feb. 5 statement that was made public. The statement clearly stated that:
“FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried, or other officers or principals of the FTX Debtors (collectively, the ‘FTX Contributors’). These recipients are requested to return such funds to the FTX Debtors by February 28, 2023.”
U.S. prosecutors are currently conducting an investigation into the political donations made by FTX between March 2020 and November 2022. Court documents filed in January revealed that the FTX debtors were assessing a total of $93 million worth of donations made during this time frame.
Moreover, prompting further scrutiny into the company’s practices. It is unclear at this time what prompted the investigation or what potential violations may have been committed. However, it appears that there is sufficient evidence to warrant further inquiry into FTX’s donations.
On December 19th, FTX’s recently appointed management team unveiled a plan to provide an avenue for political entities and groups. Inorder to voluntarily return any funds that were previously donated by its executives. If these donations are not returned, they are now legally obligated to be repaid with interest accrued.
The announcement of this policy is seen as a signal of FTX’s commitment to upholding the highest ethical standards and ensuring accountability for its actions. By clawing back these donations, FTX hopes to set a standard for responsible political giving.
“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.”