FTX Recovers Millions in Political Donations Amid Ongoing Bankruptcy Case

FTX’s bankruptcy case continues to unfold with significant developments, as recent filings reveal the recovery of millions in political donations made by the exchange.

These funds, originally funneled to various political groups at the direction of former CEO Sam Bankman-Fried, are being clawed back as part of the ongoing bankruptcy proceedings.

According to a report filed on December 10 in the U.S. Bankruptcy Court for the District of Delaware, over $14 million in small estate claims were recovered in November alone. Among the settlements, FTX debtors reached agreements with prominent political action committees, including $6 million with the House Majority PAC and $3 million with the Senate Majority PAC. Additionally, several state-level Democratic parties returned donations amounting to thousands of dollars.

These actions stem from earlier claims that Bankman-Fried used customer funds to make political donations in 2022, a charge initially filed but later dropped due to issues with his extradition from the Bahamas. Despite the lack of campaign finance charges at his criminal trial, Bankman-Fried was convicted on seven felony counts, including fraud and money laundering, and sentenced to 25 years in prison in March 2024. His legal team is currently appealing the conviction.

READ MORE:

India’s Digital Rupee: A Step Toward the Future of National Payments

In addition to Bankman-Fried, other former FTX executives have faced legal consequences. Ryan Salame, former co-CEO of FTX Digital Markets, pled guilty to campaign finance fraud linked to contributions for his partner’s congressional campaign and is serving a seven-and-a-half-year prison sentence. Caroline Ellison, the former CEO of Alameda Research, is also incarcerated after a plea deal, while two other FTX figures, Gary Wang and Nishad Singh, received sentences of time served.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.