Democrats who took campaign donations from crooked cryptocurrency exchange FTX will have to return the money, the attorney put in place to sort out the company’s finances warned.
Disgraced FTX founder Sam Bankman-Fried, who is facing charges that could put him behind bars for life, was the Democrats’ second-biggest donor in the 2022 election cycle, dropping $40 million on their campaigns. New FTX boss John Jay Ray III, who successfully clawed back millions of dollars for victims of the early 2000s Enron collapse, signaled he will go after the funds in his effort to make FTX victims whole.
“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 company said in a Dec. 19 statement. “To the extent such payments are not returned voluntarily, the FTX Debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.”
