To the relief of the crypto community and likely everyone following the rise and fall of FTX, former CEO Sam Bankman-Fried may finally face criminal and civil charges of money laundering, fraud, conspiracy, and campaign finance law violations on US soil. Meanwhile, FTX, now spearheaded by its new CEO John J. Ray III, will be looking to make things right, and recoup some of the funds carelessly spent by SBF, including generous political donations. But, achieving that may not be an easy task.
FTX’s new CEO, John J. Ray III labelled the entire fiasco as “just plain old embezzlement” and “an utter failure of corporate controls at every level of an organization.” With SBF ultimately declining to fight extradition to the US, watchful eyes now turn their attention to FTX’s next move, and what Ray is going to do about the billions of dollars in mismanaged funds, particularly the money donated to political campaigns.
The crypto exchange on Monday said it was “approached by a number of recipients of contributions or other payments” looking to give back the contributions they received from SBF. “To the extent such payments are not returned voluntarily, the FTX debtors intend to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced,” the company explained.
However, when it comes to collecting the $41 million SBF donated to political action committees, FTX debtors may have not have an easy road ahead. “That’s not something they can refund,” Republican representative Carolyn Bordeaux said to the Associated Press. “Here is an example of a billionaire using money he stole and diverted into political contributions— it’s an egregious example of the corruption in our political system.”
Information for this briefing was found via AP, the NYT, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
