• FTX is sending out ‘confidential letters’ to political figures, PACs, and other receivers of contributions made by FTX founder Sam Bankman-Fried.
• The new management is willing to take legal action against anyone who fails to return the funds before Feb. 28th, 2023 as part of their bankruptcy proceedings.
• Over 196 lawmakers have received funding from FTX, including Speaker of the House Kevin McCarthy and Senate Majority Leader Chuck Schumer.

FTX Requests Refunds From Politicians

FTX crypto exchange’s new management has sent ‚confidential letters‘ to politicians, PACs, and other receivers of contributions made by its former founder Sam Bankman-Fried to request refunds before Feb. 28th, 2023. If the recipients fail to comply with this demand, the new management will take legal action as part of their bankruptcy proceedings.

Donations Made By SBF

Before his arrest last year, SBF had been listed as a major donor during midterm elections in November 2020 after he and his associates gave over $93 million to lawmakers on both sides of the political divide. Out of 196 lawmakers that received donations from FTX, Speaker of the House Kevin McCarthy (Republican from California) and Senate Majority Leader Chuck Schumer (Democrat from New York) were two notable names that received funding from the exchange. In addition, SBF was also reported as being the second-largest ‚CEO contributor‘ towards Joe Biden’s campaign in 2020 with a donation of $5.2 million.

FTX Funds Recovery Efforts

The new management has managed to recover $5 billion in cash and liquid cryptocurrencies so far while they are currently working on modalities to sell non-strategic investments worth $4.6 billion such as subsidiaries like FTX Europe, FTX Japan, Embed and Ledger X. Meanwhile there is an ongoing task force constituted by the United States Attorney’s Office for Southern District of New York which is actively tracing missing customer funds alongside other investigations related with collapse of FTX crypto exchange .

Conclusion

FTX is taking necessary steps to ensure its creditors are paid back through refunding money that was donated by its former founder Sam Bankman-Fried who had previously donated over $93 million dollars split between 196 different lawmakers including Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer among others.. It remains unclear whether or not all these donations will be returned but it looks like FTX is taking all possible steps towards recovering any lost funds through various means such as selling off non strategic investments or using task forces set up by US attorney office for southern district NY etc