Before FTX collapsed in November last year, Sam Bankman-Fried donated millions of dollars to politicians for their campaigns. The exchange now wants all the funds back by February 28, 2023.
Notably, FTX debtors have sent confidential letters to political figures, political action funds, and other recipients of contributions.
The most recent announcement comes after the one made by FTX debtors on December 19, 2022. They disclosed the launch plans for such beneficiaries to voluntarily refund funds at that time.
Now, if the payments are not returned voluntarily, FTX debtors reserve the right to commence actions before the bankruptcy court to mandate the return of such payments, according to the statement released on Sunday. Additionally, the recipients will also have to bear interest costs from the date any action is taken.
According to recent reports, FTX advisers have been attempting to recoup money that Bankman-Fried improperly distributed. The company is looking for hidden assets that can be utilized to pay creditors. Lawyers recently requested authorization from the court to examine Bankman-family Fried’s and other former top executives, which is another step in that direction.
Leaving aside donations received by politicians, the bankrupt exchange has also reportedly been clawing back funds it donated to Florida students as scholarships.
A bankruptcy lawyer opined that going after the kids for the funds was a moral issue. Thus, it’d be at the discretion of FTX lawyers to decide whether or not it’s worth it to do so. Nevertheless, the lawyer cautioned that the prize money donated to mentor organizations could certainly be up for grabs if the company struggles to come up with the funds elsewhere.
FTX’s CEO John Ray III has time and again stated that the exchange can be revived. Despite its bankruptcy, he hasn’t lost hope in its return and has left no stone unturned in pumping back life into FTX.