(USNewsMag.com) – After the infamous collapse of FTX, the company, and affiliated debtors began trying to identify digital assets in an attempt to recover the billions of dollars investors lost when the company filed for bankruptcy. FTX Trading Ltd. And the affiliated debtors are collectively known as FTX Debtors.
As of January 17th, FTX Debtors had identified roughly $413 million in crypto that has not yet been located despite what the group calls a “Herculean investigative effort.”
A recent news release revealed that FTX Debtors is sending letters to politicians and political action funds requesting that they return any contributions made by the former CEO, Samuel Bankman-Fried or other FTX Contributors. Payments that are not returned by February 28th are subject to action in the Bankruptcy Court handling the FTX case. The statement cautions donation recipients that should legal action be required due to failure to voluntarily repay the funds, the money would begin accruing interest from the date that paperwork is filed with the court.
In a peculiar aside, the statement from FTX Debtors also warns donation recipients not to attempt to make their payment to a third party or charity as that will not prevent legal action against them or any party payment is transferred to. This is potentially an effort to head off politicians’ attempts to conceal or offset the stigma of being associated with the massive scandal.
The attempt to recover funds has led to the revelation that as much as $93 million in political donations were made by FTX. Equally shocking, CoinDesk is reporting that “one in three members of the current Congress” have been the benefactors of contributions from the company that has been charged with billions of dollars of fraud.
Among the politicians linked to the disastrous cryptocurrency firm’s fallout is failed candidate Beto O’Rourke who had received $1 million from the disgraced CEO and an FTX executive. O’Rourke claimed to have returned all of the funds in late January, however, the Washington Free Beacon discovered that Beto’s campaign was keeping $100,000 until the investigation was complete.
Sam Bankman-Fried has been charged with campaign finance violations as well as fraud.
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