Debtors representing cryptocurrency exchange FTX in the firm’s bankruptcy case have reported recovering millions of dollars worth of donations sent to political organizations.
In a Dec. 10 filing in the United States Bankruptcy Court for the District of Delaware, FTX debtors reported receiving more than $14 million in small estate claims in November.
The filing showed the debtors settled with the House Majority Political Action Committee (PAC) for $6 million, the Senate Majority PAC for $3 million, and donations worth thousands of dollars from Democratic parties in different US states.
FTX bankruptcy filing, Dec. 10. Source: Kroll
The settlements were part of the effort from FTX debtors to claw back donations made by the exchange at the order of Sam “SBF” Bankman-Fried. US authorities initially charged the former CEO with using FTX customer funds to make millions of dollars of political contributions in 2022 but dropped the charge the following year due to complications with his extradition from the Bahamas.
FTX filed for Chapter 11 bankruptcy protection in the US in November 2022 and has been embroiled in court proceedings for more than two years. In October 2024, the bankruptcy judge in the case approved a reorganization plan that could allow FTX’s debtors to repay 98% of users about 119% of their claimed account value.
Bankman-Fried escaped campaign finance charges, but not all FTX execs did
Though the former CEO never faced campaign finance charges at his criminal trial, a jury found Bankman-Fried guilty of seven felony counts, including fraud and money laundering. In March, a judge sentenced SBF to 25 years in prison. His lawyers are appealing the conviction and sentence.
Former FTX Digital Markets co-CEO Ryan Salame pleaded guilty to engaging in campaign finance fraud related to contributions to his partner Michelle Bond’s run for US Congress in 2022. Salame is currently serving seven-and-a-half years in prison, while Bond faces her own charges based on alleged violations of campaign finance law.
In addition to Bankman-Fried and Salame, former Alameda Research CEO Caroline Ellison is serving two years in prison after a plea deal with prosecutors. The only two individuals indicted in the FTX collapse to escape prison time were co-founder Gary Wang and former engineering director Nishad Singh. Both were sentenced to time served.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
