Amid the company’s reputational risks, who returned donations or contributions from FTX?
Amid the company’s reputational risks, who returned donations or contributions from FTX?
#companys #reputational #risks #returned #donations #contributions #FTX Welcome to InNewCL, here is the new story we have for you today:
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Before its demise, crypto exchange FTX and its then-CEO Sam Bankman-Fried were among the most prolific funders in space, bailing out crypto firms and donating to political campaigns and media. What happens to those funds when more than 1 million FTX creditors want to be recovered?
Bankman-Fried said in May he was willing to donate between $100 million and $1 billion to lawmakers as part of the 2024 election. Bloomberg reported Dec. 12 — hours before SBF’s arrest in the Bahamas — that total donations could total at least $73 million, given directly to candidates or through political action committees (PACs).
Although many of Bankman-Fried’s and FTX’s donations to Democrats were noted by the Federal Election Commission as part of the public records, the former CEO hinted in a December interview that Republicans received about the same amount of “dark” donations . North Dakota Senator John Hoeven, a Republican, reportedly donated the $11,600 he received from SBF and former FTX co-CEO Ryan Salame to the Salvation Army.
The Democratic National Committee, Democratic Senatorial Campaign Committee, and Democratic Congressional Campaign Committee have all reportedly pledged to return more than $1 million in donations from SBF they received since 2020. CNBC reported on Dec. 20 that the Senate-majority PAC — Democratic nominee-backing — planned to return the roughly $1 million received from Bankman-Fried and the $2 million received from former FTX engineer Nishad Singh.
US President Joe Biden, whose 2020 presidential campaign took in donations of $5.2 million from Bankman-Fried, has not said what he intends to do with the funds. Texas gubernatorial candidate Beto O’Rourke — a Democrat who lost his race to incumbent Greg Abbott — reportedly returned a $1 million donation from SBF ahead of the 2022 election. New York Representative Hakeem Jeffries and Illinois Senator Dick Durbin have also reportedly donated funds they received to unnamed charities.
These estimates indicate that post-bankruptcy creditors will have an additional $5 million available from FTX’s political contributions alone.
Along with lobbying politicians, FTX and SBF have been directly responsible for loans and grants to news organizations inside and outside the crypto space. On Dec. 9, the CEO of crypto news site The Block resigned after accepting and not disclosing two loans totaling $27 million from Alameda Research and a reported $16 million loan used to purchase Real estate in the Bahamas was used.
It’s unclear if The Block or its former CEO are willing to bail some FTX investors back to health through restructuring. However, Axios reported on Dec. 20 that nonprofit news organization ProPublica planned to repay $1.6 million it received from Bankman-Fried’s family foundation as part of a grant, with the funds being placed in a separate account pending the authorities had determined the best course of action.
Estimated Total Return? $6.6 million.
FTX user: “Where’s my money?”
Sam: pic.twitter.com/TbfZYlnjIM
— (@DMNDMINE) November 16, 2022
On Dec. 19, FTX announced a “voluntary return” plan for recipients of crypto exchange contributors or its executives, hinting at legal action if the funds are not returned. It is unclear whether all funds must be returned to the FTX debtors who process the bankruptcy and indemnify creditors, or whether third parties have the option to send funds directly to the latter.
Related: FTX exec exposed after misidentification as big donor to Oregon Democrats
Bankman-Fried’s legal team reportedly said Dec. 19 that the former CEO would not appeal an extradition case to the United States, where he faces charges of violating campaign finance laws, wire fraud and securities fraud. If convicted, he faces a 115-year prison sentence.
