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Tuesday, March 5, 2024

Bankrupt FTX Looks to Claw Back Political Donations

'Former FTX CEO Sam Bankman-Fried contributed at least $40 million over the last two years—largely to Democrats, making him the second-largest Democratic donor behind George Soros...'

(Ken Silva, Headline USABankrupt crypto exchange FTX announced Sunday that it is seeking to claw back its political donations, which were mostly made to Democrats.

FTX’s press release said the firm is sending “confidential messages” to political figures, political action funds and other recipients of FTX contributions.

The company threatened legal action if donation recipients don’t respond by the end of the month.

FTX lawyers have reportedly estimated that the company and its staff spent $93 million on political contributions.

Former FTX CEO Sam Bankman-Fried contributed at least $40 million over the last two years—largely to Democrats, making him the second-largest Democratic donor behind George Soros. Bankman-Fried has claimed to have donated an equivalent amount to Republicans in the form of “dark money” contributions so that what he called “super liberal” reporters could not trace the transactions back to him.

Additionally, Ryan Salame—the co-CEO of FTX affiliate entity FTX Digital Markets—reportedly donated $19 million to Republicans, making him the 10th largest GOP donor.

Some recipients say they have already returned the donations, while others have announced their intentions to do so.

Officials from the Democratic National Committee, Democratic Senatorial Campaign Committee, and the Democratic Congressional Campaign Committee reportedly said in December that they would await guidance from the government on how to return the donations.

Critics have accused FTX of tipping the scales of tight midterm elections towards the Democrats.

FTX donations also caused a minor scandal among Republicans when it was revealed that Rep. Kevin McCarthy, R-Calif., used them to boost midterm candidates sure to back his bid to become House Speaker.

Ken Silva is a staff writer at Headline USA. Follow him at twitter.com/jd_cashless.

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