Shock Request From FTX Lawyers: “Return These Money By The End Of February!”

bankrupt cryptocurrency stock market FTXformer CEO from political figures and groups Sam Bankman-Fried and other FTX executives to return donations by the end of February.

FTX Creditors Want Political Contributions Refunded by End of February

The exchange said that FTX has sent confidential notices to political figures, political action groups, and other recipients of contributions and payments. The crypto exchange filed for bankruptcy protection in November.

According to court documents filed in January, FTX creditors are reviewing $93 million in political donations made between March 2020 and November 2022.

Bankman-Fried pleaded not guilty to violating campaign finance laws, among other charges, in a separate criminal trial.

Some political groups that received the FTX-linked funds have already taken steps to return the money.

The Democratic National Committee, along with the party’s key Senate and House campaign committees, said they would set aside more than $1 million in FTX-related cash in December and return them at the direction of bankruptcy lawyers.

Some lawmakers who have received donations related to FTX have taken steps to distance themselves symbolically from the exchange by donating the money to charities. FTX cautioned that this will not prevent bankruptcy lawyers from trying to recover the funds.

“Buyers are cautioned that making payments or donations to a third party (including a charity) in any payment amount received from an FTX participant does not prevent FTX borrowers from seeking redemption from the buyer or any subsequent transferee,” FTX said.

*Not investment advice.