{"id":1135841,"date":"2023-02-05T16:10:11","date_gmt":"2023-02-05T21:10:11","guid":{"rendered":"https:\/\/bugaluu.com\/news\/confidential-letters-ftx-demands-politicians-return-millions-in-sbf-donations\/1135841\/"},"modified":"2023-02-05T16:10:11","modified_gmt":"2023-02-05T21:10:11","slug":"confidential-letters-ftx-demands-politicians-return-millions-in-sbf-donations","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/confidential-letters-ftx-demands-politicians-return-millions-in-sbf-donations\/1135841\/","title":{"rendered":"“Confidential Letters”: FTX Demands Politicians Return Millions In SBF Donations"},"content":{"rendered":"
\"\"<\/a><\/div>\n

“Confidential Letters”: FTX Demands Politicians Return Millions In SBF Donations<\/span><\/p>\n

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Just when you thought the FTX travesty couldn’t get any more bizarre<\/em><\/strong>, the now bankrupt company is trying to claw back political donations and other spending that took place at the direction of former CEO Sam Bankman-Fried.\u00a0<\/p>\n

A press release made its way out mid-day Sunday that FTX’s debtors and the company had sent “confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors,\u00a0Samuel Bankman-Fried\u00a0or other officers or principals of the FTX Debtors” requesting the funds back.\u00a0<\/strong><\/em><\/p>\n

“<\/strong><\/em>These recipients are requested to return such funds to the FTX Debtors by\u00a0February 28, 2023,” the release states.\u00a0<\/p>\n<\/p>\n

It continues: “The messages follow the\u00a0December 19, 2022, announcement by the FTX Debtors that they have established arrangements for such recipients to return funds voluntarily by contacting (FTXrepay@ftx.us<\/a><\/u>).”<\/p>\n

Then, the release threatens legal action to those who are unwilling to return funds: “To the extent such payments are not returned voluntarily, the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.”<\/p>\n

“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee,” the release says.\u00a0<\/p>\n

We noted<\/a> back in December that $73 million in political donations were now at risk as a result of the bankruptcy.\u00a0SBF\u00a0also donated<\/a>\u00a0to Democratic Rep. Ritchie Torres of New York, who last year was one of 8 members of Congress\u00a0who lobbied against regulating crypto.<\/p>\n

<\/a><\/p>\n

“Nobody ends up looking great in this,” said University of Rochester political science professor, David Primo, at the time.\u00a0<\/p>\n

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While there\u2019s precedent for forcing political entities to return contributions in cases of fraud, recovery prospects are unclear in FTX\u2019s case. Recouping campaign funds as part of the bankruptcy proceedings is a complicated and lengthy process, and the scope of the total funds eligible for clawback depends on myriad federal and state laws. It is also subject to the bankruptcy lawyers\u2019 judgment on what money, which may be long spent by the time the FTX trustees try to go after it, is worth the effort.<\/em><\/p>\n

Bankman-Fried is facing additional scrutiny for recently saying he gave equally to Republicans and Democrats, but funded conservatives through \u00a0\u201cdark money\u201d groups that don\u2019t identify donors. The claim is\u00a0almost impossible\u00a0to verify unless the recipients voluntarily disclose they received money from him. -Bloomberg<\/em><\/p>\n<\/blockquote>\n

One factor noted in the debate over clawbacks is\u00a0whether the bankruptcy court determines there was fraud or fraudulent intent\u00a0involved in the collapse of FTX, according to Ilan Nieuchowicz, a litigator for law firm Carlton Fields. If that’s the case,\u00a0nearly all donations tied to FTX could be a recovery target. If not, then only those made within the 90-day period prior to FTX’s insolvency, or around $8.1 million, would potentially be subject to recapture.<\/p>\n

Meanwhile, $26.6 million of FTX-linked contributions went directly to large super PACs, including those who gave money to House and Senate leadership of both parties (and of course, the proportion isn’t mentioned).\u00a0<\/p>\n

Recall, we reminded readers back in December that SBF was\u00a0being heralded as\u00a0“one of the people most responsible” for Biden’s 2020 win.<\/p>\n

Somebody better flip over Hunter Biden and see how much change falls out of his pockets…<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 02\/05\/2023 – 19:30<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“Confidential Letters”: FTX Demands Politicians Return Millions In SBF Donations Just when you thought the FTX travesty couldn’t get any more bizarre, the now bankrupt…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1135841","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1135841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1135841"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1135841\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1135841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1135841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1135841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}