FTX recovers $14.5 million through political donation settlements News ▸ US ▸ FTX ▸ Bankruptcy
FTX recovers $14.5 million through political donation settlements
Political entities return millions in donations as FTX continues its quest to reclaim assets from Bankman-Fried's sprawling influence campaign.
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Updated: Dec. 11, 2024 at 12:05 pm UTC
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FTX debtors secured approximately $14.5 million in November through small claim settlements, primarily from political donations, according to a Dec. 10 court filing.
The recovered funds included $6 million from the House Majority PAC and $3 million from the Senate Majority PAC. Additional returns came from organizations like Forward Action Fund, Mind the Gap, and the People for the American Way, each contributing over $1 million.
These efforts followed more than two years of bankruptcy proceedings, during which the estate demanded the return of funds linked to donations made under Sam Bankman-Fried‘s leadership.
Bankman-Fried, the exchange’s former CEO, heavily invested in lobbying and political contributions to gain influence in Washington. Reports indicate that FTX executives donated to nearly one-third of Congress, with Bankman-Fried himself giving at least $40 million to various political campaigns.
While much of this funding went to Democrats, Bankman-Fried claimed he had also supported Republicans in equal measure, although no clear records have substantiated this.
After FTX’s collapse, many politicians sought to dissociate from the scandal, redirecting donations from the defunct exchange to charitable causes. Notably, Gemini co-founder Cameron Winklevoss recently urged the incoming US government to pursue campaign finance charges against the convicted FTX founder.
In recent months, the bankruptcy estate has been working to recover funds distributed to political entities, venture projects, and other recipients. FTX has also ramped up legal actions to retrieve additional funds held by other platforms.
In November, the firm sued Binance and its former CEO, Changpeng Zhao, to recover $1.8 billion. Similar lawsuits targeted Crypto.com, KuCoin, and high-profile individuals, including former White House Communications Director Anthony Scaramucci.
These efforts reflect the bankrupt firm’s commitment to retrieving misallocated assets and are part of broader efforts to prepare for creditor reimbursements, set to begin in early 2025.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
KuCoin
KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies that launched in September 2017.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.
Cameron Winklevoss, a renowned figure in the cryptocurrency sector, is a Harvard University graduate with a degree in Economics and holds an MBA from Oxford University.