The new administrators of FTX, the cryptocurrency giant FTX founded by Sam Bankman-Fried (SBF) and which went bankrupt in November 2022, have begun actions to recover money paid to Democrats and Republicans to fund the midterm campaign. And they also try to reclaim the contributions donated by the crypto group or its founder to charities and non-profit organizations. The Wall Street Journal reveals it. The new CEO of FTX., John J Rayhas, in agreement with the bankruptcy court, launched the first fundraising actions related to the $73 million paid to midterm election candidates over the past 18 months. SBF paid most of the sum – $40 million – to Democratic and Liberal candidates, but also to another top FTX executive, Ryan Salami, has paid large sums ($23 million) to Republican and Conservative candidates. All of these loans were made when FTX was no longer able to repay its customers the deposited capital.
The request also to non-profit organizations
The same recovery action, always with the help of the court, was initiated in the same period for charitable payments for an amount not yet determined by the new administrators. The search is currently underway for the $160 million that SBF announced a donation for in September 2022 110 non-profit organizations. The court also targeted the donated money to a special list of non-profit organizations recommended by the Brazilian model Gisele Bundchenwho filmed an FTX commercial with her then-husband Tom Brady (from which it is now separate). Before the bankruptcy court filed the recovery action, a number of nonprofit organizations have already come forward to return all or part of the donation received from SBF. The Alignment Research Center, a non-profit machine learning organization, has announced a $1.25 million refund. A nonprofit investigative news outlet like ProPublica has already announced the return of $1.6 million. The Good Food Institute, which promotes alternatives to animal meat, has instead said it has already spent the donation it received and cannot return it. However, it cannot be ruled out that the court may still be able to reclaim them.
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