FTX, the once high-flying crypto exchange that filed for bankruptcy in November, is calling for the return of funds that were allegedly misused by former CEO Sam Bankman-Fried.
The new CEO, John John Jay Ray III, warned that the company would take legal action to recover the funds along with interest if they are not voluntarily returned.
Bankman-Fried, a major donor to political candidates, has been charged with eight financial crimes, including securities fraud, money laundering, and campaign finance violations.
He has been accused of misusing billions of dollars in customer funds to support his trading firm, purchase private real estate, and donate to political campaigns.
Bankman-Fried and other FTX employees donated more than $84 million to political candidates and organizations, according to a public spreadsheet by OpenSecrets.org.
Some politicians have already returned the funds, while others have pledged to donate equivalent amounts to charity.
The statement is likely to increase pressure on political figures to return FTX-linked funds and shed light on the extent of the political world’s involvement with the downfall of the crypto exchange.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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