FTX's 75 Million USD Donations To Politics Is At Risk Of Being Recollected Due To Bankruptcy

FTX's 75 Million USD Donations To Politics Is At Risk Of Being Recollected Due To Bankruptcy

SEC latest statement

SEC - The U.S. Securities and Exchange Commission has formally charged Samuel Bankman-Fried for concealing his transfers from FTX's clients to crypto trading firm Alameda Research while raising more than 1.8 billion USD from investors.

The SEC complaint accuses Bankman-Fried of violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Along with that, SDNY and the CFTC also announced the charges today against Sam.

Current situation

After the collapse of FTX and the filing of Chapter 11 bankruptcy of the US Bankruptcy Code on November 11th. There is at least $75 million that Sam Bankman-Fried and his partners have donated to political activities at risk of being recalled by lawyers after listing the remaining assets of FTX in order to find assets to pay off FTX's creditors.

Sam Bankman-Fried and two FTX executives, Ryan Salame and Nishad Singh, are accused of making major contributions to politicians and the super PACs of both Democrats and Republicans with millions of dollars in order to use politics to impact crypto market regulation.

Verified amount

At the moment, the identified political donations include more than 6 million USD contributed to a super PAC for House Democrats, 3.5 million USD for the GOP's Senate Leadership Fund and $3 million to a fund supporting Senate Democrats.

On the other hand, some politicians have transferred the money they receive from FTX to charity to avoid getting their names attached to this crumbling empire, to name a few such as Senator John Hoeven, a North Dakota Republican, donated the $11.600 he received from Sam Bankman-Fried and Ryan Salame to the Salvation Army. Along with them are Hakeem Jeffries, the Democratic leader in the House of Representatives, and Dick Durbin, a member of Senate Democratic leadership.


However, FTX donations received by these politicians may still be required to be returned to the bankruptcy trustee. Reimbursement claims are decided by the court in determining whether the FTX collapse was related to fraud. If so, these political donations will be forfeited for the purpose of paying FTX's creditors.

Source: Bloomberg, SEC

The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect losses arising from the use of this article content.
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