Bankrupt FTX threatens legal action to claw back donations to politicians, charities

The new leadership team of bankrupt cryptocurrency exchange FTX.com has threatened legal action against political and charitable organizations that fail to return donations they received when the exchange was led by Sam Bankman-Fried, according to a statement released Sunday.

FTX requested the funds be returned by Feb. 28, claiming that they “reserve the right to commence actions before the Bankruptcy Court” if the funds are not returned by that date, with interest accruing from the date any action is commenced.

Recipients of such funds were also warned that making subsequent charitable donations of the equivalent amount being sought for return would not shield them from FTX’s recovery efforts. The move is a harder shift in tone from the message sent on Dec. 19 by FTX that funds should be returned voluntarily, sharing an email address “[email protected]” for the purpose.

Anthony Sabino, a professor at St. John’s University School of Law in New York, told Forkast the US Bankruptcy Code supports FTX’s claims, including a statute that says any payment made by the debtor 90 days before bankruptcy, regardless of intent, must be returned.

“FTX has an excellent chance to recover political donations,” he said in an emailed statement, but added that the hurdle will be proving it was FTX’s money, rather than Sam Bankman-Fried’s.

“If it comes directly from FTX, that’s an easy win. If it comes from an individual, then you have to trace the money and demonstrate it is really FTX money, and the individual donor is just a conduit for moving the money around.”

“Righteous moment”

Braden Perry, a partner at US law firm Kennyhertz Perry, said “unfortunately, it happens often” in trying to get funds such as this being returned in bankruptcy cases.

Perry, a former senior trial attorney at the Commodities and Futures Exchange Commission, said in an email there were similar efforts to reclaim donated funds after the collapse of the Robert Allen Stanford and Bernie Madoff Ponzi schemes around 2010.

Typically, there is a “righteous moment” where funds deemed illegal are returned and it’s considered no harm/no foul, he added.

Sabino explained a second statute, “fraudulent conveyance,” could also help FTX recover payments made in the past two years. This statute includes the notion of “constructive fraud,” which considers whether the debtor received any value in return.

“That’s the problem for political donations,” Sabino said. “What measurable value do you receive for donating to a politician? And if you can measure the value, then it starts to sound like a bribe, something no one wants to allege.”

Biden returns?

Prior to FTX’s collapse in November last year, the firm and Bankman-Fried were among the largest contributors to the US Democratic party throughout the 2020 Presidential elections, including to the current president, Joe Biden.

In December, the White House refused to confirm whether Biden’s administration would return the more than US$5 million he received from FTX.

Reports indicate Bankman-Fried’s donations throughout the election cycle may have topped US$40 million. Almost US$30 million of that came from his own political action committee (PAC), Protect Our Future, established by the former billionaire to support “altruistic” causes.

An additional US$6 million was donated to the Democrat-aligned House Majority PAC.

freak out

Bankman-Fried said in November that he donated equal amounts to the Republican party.

He did not disclose those donations earlier because “reporters freak the f*** out if you donate to Republicans… I didn’t want to have that fight,” he said in an interview with citizen journalist Tiffany Fong.

Several politicians have already signaled they plan to donate the FTX funds they received elsewhere. They include Democratic Senator Kirsten Gillibrand and Republican Senator John Boozeman, two of the leading voices in the US Congress for increased cryptocurrency regulation.

FTX collapsed in November 2022 after a run on its FTT token led to insufficient funds to honor customer withdrawals. US Federal prosecutors later charged Bankman-Fried with a list of financial crimes, including securities fraud, money laundering, and campaign finance violations.

Bankman-Fried is now out of detention on a US$250 million bail bond, one of the largest in US history. He has pleaded not guilty to all charges and his trial is set for October this year.

(Updates to add comments throughout from law professor Anthony Sabino.)

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
slot thailand slot dana 888slot slot zeus ladangtoto sv388 slot server kamboja slot server jepang slot deposit pulsa joker123 pg soft mahjong ways 2 888slot gb777 joker123 slot zeus slot rusia slot jepang slot zeus slot77 pg soft rtp slot slot thailand slot thailand slot88 nolimit city slot jepang slot kamboja slot777 rtp slot slot zeus slot server luar negeri sv388 mahjong ways 2 slot deposit dana slot deposit ovo pg soft sweet bonanza wild bandito thor megaways mahjong ways 2 slot deposit pulsa meong77 spaceman slot gopay slot ovo slot dana slot server kamboja slot server thailand slot server jepang slot thailand slot88 slot zeus slot server kamboja slot thailand slot kamboja slot jepang slot zeus rtp slot slot mahjong ways slot thailand slot zeus slot777 slot pulsa slot dana slot thailand slot88 ladangtoto slot mahjong ways slot thailand slot kamboja slot qris slot zeus pg soft slot88 mahjong ways 2 slot zeus slot server kamboja slot deposit dana slot deposit ovo slot deposit gopay slot dana nolimit city slot princess slot kamboja slot777 slot88 mahjong ways 2 slot thailand slot dana slot kamboja slot77 slot zeus slot luar negeri https://bpkad.muratarakab.go.id/public/hacksaw-idn/ https://bpkad.muratarakab.go.id/public/mandiri-gacor/ ASIA GAMING SLOT SEABANK SLOT SAKUKU slot dewa x500 https://bpkad.muratarakab.go.id/public/sjoker123/ sv388 starlight princess slot thailand slot kamboja slot jepang slot luar negeri slot777 slot zeus mahjong ways 2 slot888 rtp slot slot zeus slot88 slot zeus slot princess pg soft slot777 slot kamboja slot jepang slot rusia slot malaysia slot korea slot myanmar https://bpkad.muratarakab.go.id/public/smahjong/ SLOT NEOBANK SLOT LINKAJA AKUN PRO PLATINUM CHEAT SLOT https://sikerma.untirta.ac.id/application/libraries/pragmatic/ slot maxwin https://sikerma.untirta.ac.id/application/libraries/sgopay/ Pg Soft Starlight Princess Sv388 Joker123 Sbobet Slot88 RTP Slot Slot Dana Slot Ovo Slot Pulsa WS168 Ladangtoto slot bonanza SLOT JAGO slot777 https://sikerma.untirta.ac.id/_assets/sqris/ SLOT MAHJONG SLOT DEWA Slot Thailand Slot Zeus http://labse.ce.undip.ac.id/sejarah/gacorx/ Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin Slot Thailand Sv388 Joker123 Starlight Princess Mahjong Ways 2 Slot Maxwin SLOT MEGAWAYS SLOT TRIOFUS CHEAT SLOT SLOT MANDIRI SLOT GANAS SLOT LINKAJA ladangtoto SLOT DEWA ZEUS SLOT BANTENG SLOT MANTAP SLOT X500 Slot Thailand Slot Zeus Slot Thailand Slot Zeus Sv388 Pg Soft Starlight Princess Slot Thailand Slot Zeus Slot Thailand Slot Zeus slot thailand slot server luar negeri slot qris slot thailand akun pro kamboja akun pro jepang slot filipina slot rusia slot kamboja joker123 slot zeus slot88 888slot slot deposit pulsa mahjong ways 2 slot jepang slot dana slot luar negeri koi gate nolimit city slot thailand slot princess slot zeus slot77 ladangtoto slot thailand slot kamboja 888slot slot mahjong slot777 slot luar negeri slot zeus nolimit city ladangtoto sv388 slot88 slot thailand slot megaways slot ikan https://bpkad.muratarakab.go.id/system/core/s888/ https://bpkad.muratarakab.go.id/system/core/s777/ slot mania NEW SLOT POLA GACOR Joker123 Slot Thailand Slot Gacor Slot Zeus Slot Princess Slot Maxwin Pg Soft RTP Live Slot Pulsa Slot Server Luar Slot Thailand Mahjong Ways 2 Pg Soft Slot Zeus Sv388 Starlight Princess Joker123 Slot Maxwin Slot Ovo Slot Gopay Slot Bank BSI Gates Of Gatotkaca Twilight Princess Idn Slot Slot Toto Slot Anti Rungkad Slot Receh Slot Hoki Slot Asia Dewa Slot Depo Slot Raja Slot Nexus Slot Slot X500 Slot Dana Slot Server Luar Starlight Princess Slot Thailand Slot Hongkong Joker123 Slot Zeus Starlight Princess Sv388 Slot Thailand Slot Zeus Joker123 Sv388 Starlight Princess Mahjong Ways 2 Slot Hongkong Pg Soft Slot Zeus Sv388 Joker123 Slot Princess Slot Thailand Slot Thailand Slot Zeus Mahjong Ways 2 https://imwi.ac.id/assets/files/gacor-maxwin/ Slot Thailand Slot Zeus https://mandiri-gacor.angkolatimur.tapselkab.go.id/ jp slot slot ganas https://cheat-gacor.angkolatimur.tapselkab.go.id/ crazy time live slot qris https://sqris.angkolatimur.tapselkab.go.id/ slot akurat https://deposit-mandiri.pfn.co.id/ slot bca slot bni https://deposit-bri.pfn.co.id/ nolimit city slot thailand qris nolimit city slot korea slot zeus https://sibangkodir.bpsdm.jatimprov.go.id/vendor/phpspec/sqris/ nolimit city SLOT777 https://d3akt.feb.unri.ac.id/demo/ slot new terbaru https://rujak-bonanza.old.telusur.co.id/ slot gatot kaca https://bonanza-gold.old.telusur.co.id/ slot sugar rush https://x500-gacor.old.telusur.co.id/ https://server-luar-negeri.pfn.co.id/ https://bpusdataru-probolo.jatengprov.go.id/products/ server thailand https://pragmaticplay.dharmasatyasarana.co.id/ https://joker123.dharmasatyasarana.co.id/ https://pg-soft.dharmasatyasarana.co.id/ https://server-thailand.dharmasatyasarana.co.id/ https://dana.sidamaju.skom.id/ https://ovo.sidamaju.skom.id/ https://gopay.sidamaju.skom.id/ https://server-thailand.old.telusur.co.id/ https://server-kamboja.old.telusur.co.id/ https://server-rusia.old.telusur.co.id/ https://server-hongkong.old.telusur.co.id/ http://mahjong-ways.old.telusur.co.id/ https://idn.old.telusur.co.id/ https://starlight-princess.old.telusur.co.id/ https://zeus.old.telusur.co.id/ https://dana.old.telusur.co.id/ https://gacor88.old.telusur.co.id/ https://sabung-ayam-online.old.telusur.co.id/ https://pulsa.old.telusur.co.id/ https://pragmaticplay.old.telusur.co.id/ https://pg-soft.old.telusur.co.id/ https://joker123.putramuko.co.id/ https://akun-pro-rusia.mariyadl.sch.id/ https://ws168.putramuko.co.id/ https://pgsoft.putramuko.co.id/ sv388 joker123 zeus slot princess 1000 mahjong ways rtp slot slot88 server thailand sabung ayam online slot zeus pgsoft mahjong ways digmaan slot ovo joker123 server thailand ladangtoto slot zeus mahjong ways rtp slot slot princess sv388 joker123 digmaan powergaming88 powergaming88 powergaming88 server jepang server kamboja slot dana server thailand server hongkong slot ovo slot gopay slot linkaja joker123 nolimit city sv388 starlight princess mahjong ways pg slot slot zeus server thailand joker123 nolimit city slot dana sv388 server thailand joker123 sv388 mahjong ways zeusslot powergaming88 starlight princess idn slot 888 slot https://live-casino.pta-bali.go.id/ https://mi.pta-surabaya.go.id/mahjong-ways/ ladangtoto https://joker123.elearningmansatuokit.sch.id/ slot server thailand slot dubai slot malaysia slot kamboja sbobet sabung ayam online slot pragmatic zeus slot slot pg soft mahjong ways slot dana slot thailand 888 slot gacor88 gb777 ying77 66kbet ladangtoto2 slot thailand https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ https://dinkes.hsu.go.id/wp-content/uploads/server-thailand/ ladangtoto slot thailand nolimit city koi gate zeus slot slot malaysia slot china slot rusia slot jepang slot amerika slot filipina slot dana sicbo online roulette online lice casino joker slot slot gacor maxwin slot mahjong slot303 live22 baccarat online slot hongkong slot303 slot88 nolimit city slot ovo slot gopay slot77 pragmati play starlight princess slot pg soft slot mahjong slot zeus slot thailand slot zeus starlight princess mahjong ways joker123 sv388 rtp slot slot dana slot ovo slot gopay nolimit city digmaan sabung ayam online powergaming88 powergaming88 slot kamboja slot dana pgsoft sabung ayam online slot princess slot777 slot jepang slot korea slot kamboja slot dana slot ovo joker123 rtp slot slot thailand slot zeus starlight princess mahjong ways joker123 sv388 rtp slot joker123 sabung ayam online slot pragmatic slot dana slot mahjong zeus slot slot thailand starlight princess slot pragmatic slot thailand sv388 joker123 slot zeus mahjong ways server thailand slot123 slot gacor slot dana slot mahjong slot maxwin slot pg soft gaming88 slot kamboja sabung ayam online slot mania slot zeus joker123 slot gacor slot jepang slot zeus akun vip slot pragmatic slot bet 100 sv388 mahjong ways pg soft slot maxwin zeus slot slot88 sv388 slot zeus slot princess sv388 pg soft mahjong ways slot zeus starlight princess joker123 slot thailand sv388 slot dana slot kamboja slot88 slot kamboja slot thailand slot thailand slot thailand slot dana slot thailand fafaslot sv388 slot zeus joker123 sv388 slot thailand pg soft mahjong ways slot zeus starlight princess rtp slot sv388 sabung ayam online 66kbet ying77 dewaslot ladangtoto gaming88 slot thailand slot maxwin gaming88 slot123 mahjong ways starlight princess joker123 slot pg zseus slot servee thailand 66kbet gaming88 ying77 ladangtoto dewaslot sabung ayam online slot thailand slot77 slot thailand server thailand slot88 slot maxwin slot thailand server thailand slot88 slot thailand slot mahjong slot88 slot zeus pg soft slot gacor maxwin sv388 joker123 ladangtoto 66kbet ying77 slot thailand server thailand slot maxwin slot88 pragmatic play judi bola live casino sv388 sbobet mahjong ways pragmaticplay sv388 sv388 pragmatic play slot gacor maxwin pg soft gates of olympus joker123 sv388 pg soft slot mahjong slot dana sv388 fafaslot idn poker joker123 mahjong ways sabung ayam online pg soft pragmatic slot petir slot olympus slot mania fafaslot slot mania fafaslot habanero ladangtoto ying77 66kbet gaming88 slot thailand server thailand sabung ayam online slot mania slot mahjong slot bet 200 slot dana slot hoki slot x500 slot pgsoft slot thailand slot kamboja slot jepang slot amerika slot mahjong slot gacor 2023 slot x500 ladangtoto slot server kamboja nolimit city digmaan slot thailand dewaslot digmaan sv388 slot joker123 mahjong ways 2 slot zeus starlight princess slot88 pg soft slot olympus 66kbet ladang toto ying77 gaming88 dewaslot pg soft 66kbet ying77 ladangtoto dewaslot scv388 sabung ayam online slot sabung ayam online live casino 66k ladangtoto digmaan slot pragmatic slot jepang slot china slot kamboja slot rusia slot malaysia slot amerika slot thailand slot zeus slot ovo slot dana slot gopay sicbo online roulette online joker123 slot mahjong tembak ikan online joker123 live casino slot123 66k ying77 ladangtoto sabung ayam online 66k ying77 ladangtoto live casino online sabung ayam online 66k ying77 ladangtoto slot thailand ladangtoto ladangtoto sv388 ladangtoto ladangtoto ladangtoto sv388 ladangtoto sv388 66kbet ying77 gaming88 dewaslot ladangtoto slot thailand slot thailand ladangtoto 66k bet ying77bet sv388 66kbet ying77 ladangtoto 66k one ladangtoto ying77 slot maxwin 66k bet ying77bet ladangtoto slot zeus slot thailand slot thailand server thailand slot thailand slot thailand server thailand slot thailand slot thailand slot thailand slot thailand slot thailand slot thailand slot thailand slot thailand slot thailand slot gacor ladangtoto2 slot thailand server thailand ying77 bet ying77 ladangtoto 66k bet slot gacor server thailand slot88 slot gacor slot thailand slot88 slot thailand ying77 ying77 powergaming88 slot88 ladangtoto ladangtoto sabung ayam online slot thailand slot maxwin sv388 pg soft mahjong ways sv388 mahjong ways 2 sv388 slot thailand 66k bet slot sv388 ladangtoto slot zeus slot gacor dewaslot ladangtoto 66k bet slot dana sabung ayam online sabung ayam inline slot thailand slot thailand slot88 slot thailand slot pgsoft slot slot mahjong slot thailand fafaslot slot princess slot gopay slot toto slot server thailand slot thailand slot gacor slot server thailand slot thailand slot gacor slot kakek zeus Joker123 Mahjong Ways 2 Sv388 Sbobet Slot Dana Slot Thailand slot thailand situs slot wwg slot slot daftar judi slot online indonesia slot mahjong ways slot gacor slot mawin slot gacor slot thailand slot thailand slot gacor slot gacor slot gacor demo slot pragmatic sv388 slot88 pgsoft slot thailand slot gacor slot ovo Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot kakek slot dana slot maxwin slot server luar negeri slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388 Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia powergaming88