FTX Trading Ltd. announced that suspected fraudster Samuel Bankman-Fried has resigned as the company’s CEO on November 11, 2022.
The cryptocurrency exchange also revealed that it filed for Chapter 11 bankruptcy protection along with roughly 130 affiliated companies.
In the report published by the United Voice, it was revealed that “FTX is asking lawmakers and political groups to return donations received from the company’s now-disgraced former head.”
The press release was published on February 5, 2023, by the FTX Trading and its affiliate through PR Newswire.
According to the release, FTX Trading reportedly sent “confidential” messages to several political action committees, lawmakers and other recipients of donations given at the direction of Bankman-Fried.
It also added that the recipients were only given until the end of February to return those funds.
Press Release pic.twitter.com/rgxq3QSBqm— FTX (@FTX_Official) November 11, 2022
In the statement, the “FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the “FTX Debtors”), announced the FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors (collectively, the “FTX Contributors”). These recipients are requested to return such funds to the FTX Debtors by February 28, 2023.”
The company also revealed that “the messages follow the December 19, 2022, announcement by the FTX Debtors that they have established arrangements for such recipients to return funds voluntarily by contacting ([email protected]). To the extent such payments are not returned voluntarily, the FTX Debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.”
Moreover, the FTX Tradings also warned the recipients about seeking recovery in case payments or donations were made.
“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee,” the statement continued.
