According to a report by Semafor, former FTX founder Sam Bankman-Fried (SBF) has been asked by U.S. federal prosecutors to return political donations made to lawmakers.
This notice was issued in February by the U.S. District Attorney for the Southern District of New York, which stated that the donations made to lawmakers represented SBF’s proceeds of crime, and hence could be recovered under federal asset forfeiture laws. The directive is for the recipient to return the donations to the U.S. law enforcement agencies, not to FTX.
The prosecutors are planning to use any funds confiscated to compensate victims of crimes related to the SBF case. The U.S. government is also negotiating with bankrupt FTX in this regard.
Earlier, FTX had sent a confidential letter to U.S. politicians, asking them to return their donations by February 28. At least two members of Congress received the letter, as confirmed by Semafor.
Semafor also revealed that SBF is an investor in Semaphore and that the company is planning to purchase his stake. The case involving SBF is gaining momentum, and the developments around the recovery of the proceeds of crime are being closely watched.
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This article was republished from azcoinnews.com