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The FTX management under the new CEO, John J. Ray III, has set a deadline of February 23rd for political parties and charity organizations to return donations received from the ex-CEO, Sam Bankman-Fried.
FTX debtors sent official letters to the political figures and other recipients of Bankman-Fried’s benevolence on Sunday. In the letter, FTX demands that they return the funds within the specified time frame or face legal action in a bankruptcy court.
The recent announcement follows shortly after FTX management sent out an email address for beneficiaries to return funds received together with accrued interests.
Beneficiaries of the former CEO’s donations were informed that making a contribution to a charity equal to any funds received from an FTX contributor does not prevent the FTX debtors from pursuing recovery from the receiver or any subsequent transferee.
Bankman-Fried was a well-known financier and contributor to political entities in the United States. He was reported to have contributed roughly $40 million to Democratic-aligned political committees and organizations in the US during the 2022 election cycle.
Additionally, the former CEO claimed to have given money to the Republican Party (Grand Old Party), although these contributions were made through nonprofit organizations that do not disclose the names of their donors
FTX Explores Various Ways to Recover Assets
FTX lawyers stated earlier during the ongoing bankruptcy proceedings that the embattled exchange is seeking to recover funds made in donations in order to repay investors whose funds are still tied in the exchange.
Meanwhile, a report from The Economic Times revealed that the bankrupt FTC exchange has recovered over $5 billion in cash and liquid crypto, and securities. However, the funds do not include those seized by the Bahamas Regulators, which largely consist of the exchange’s native token.
Additionally, FTX has also sought the court’s permission to sell some of its subsidiary firms which were acquired before it collapsed. FTX said it intends to sell off Embed, FTX Japan, FTX Europe, and LedgerX. John Ray stated that the companies should be sold so that their value does not decrease
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