FTX said it is taking legal action to collect all payments and contributions made by its affiliated entities and previous executives, which could include millions in contributions made by its former CEO Sam Bankman-Fried to politicians.
In a recent statement, FTX asked individuals who had received funds to “make arrangements for the return of such payments,” adding that if they were not returned voluntarily, it would file a lawsuit to recover the funds with interest.
Politicians reportedly in contact with FTX to return Sam Bankman-Fried payments
Legal experts have already warned that up to $73 million in political donations from FTX could be targeted for recovery in order to repay the estimated one million creditors owed up to $10 billion to $50 billion in its bankruptcy case.
Three well-known Democratic organizations only last week promised to repay more than $1 million in political contributions made by Bankman-Fried on Dec. 16 in response to his arrest and indictment.
Relentless pursuit of funds
Meanwhile, some members of the US Congress who received political contributions from FTX have reportedly donated the funds to charity in order to distance themselves from the exchange and its founder.
However, FTX stated that these charitable offloads will not be enough to prevent it from pursuing the funds.
“Making a payment or donation to a third party (including a charity) […] Does not prevent the FTX Debtors from seeking recovery,” it said.