FTX said it is taking legal action to collect all payments and contributions made by its affiliated entities and previous executives, which could include millions in political contributions made by its former CEO Sam Bankman-Fried.
In a recent statement, FTX asked individuals who had received funds to "make arrangements for the return of such payments," adding that if they were not returned voluntarily, it would file a lawsuit to recover the funds with interest.
A number of receivers of contributions or other payments made by or under the direction of Bankman-Fried or other officers have already contacted FTX, the company claimed, asking for "directions for the return of such funds."
Three well-known Democratic organizations only last week promised to repay more than $1 million in political contributions made by Bankman-Fried on Dec. 16 in response to his arrest and indictment.
A White House press secretary was asked on Dec. 13 if the Biden administration would return the $5.2 million in political contributions that Bankman-Fried had previously made, but at the time chose not to respond.
Legal experts have warned that up to $73 million in political donations from FTX could be targeted for recovery in order to repay the estimated one million creditors owed up to $10 billion to $50 billion in its bankruptcy case.
Meanwhile, some members of the U.S. Congress who received political contributions from FTX have reportedly donated the monies to charity in order to distance themselves from the exchange and its founder.
However, FTX stated that these charitable offloads will not be enough to prevent it from pursuing the funds.
"Making a payment or donation to a third party (including a charity) [...] Does not prevent the FTX Debtors from seeking recovery," it said.
On Dec. 13, Bankman-Fried was accused of violating campaign finance regulations, notably by making contributions in other people's names and hindering the work of the Federal Election Commission.
With $36.6 million transferred to Democratic Party candidates for the 2022 midterm elections, Bankman-Fried was the second-largest donor. He also contributed $5.2 million, making him the second-largest "CEO-contributor" to Joe Biden's 2020 presidential campaign in the United States.
In an interview with cryptocurrency YouTuber Tiffany Fong on Nov. 16, the CEO of FTX stated that he had "donated about the same to both parties," but that his contributions to Republicans were "dark."
Other FTX executives, such Ryan Salame, gave roughly $20 million to Republican candidates, and Nishad Singh gave the Oregon Democrats at least $500,000.
