FTX Bankruptcy: Lawyers Ask Funded Politicians To Pay Back Tens Of Millions Of Dollars!
Last week FTX attorneys sent private letters to politicians and PACs (Political Action Committees) who received donations from the company, giving them until Feb. 28 to voluntarily pay back the money or face legal action.
According to a company release, “To the extent such payments are not voluntarily returned, Debtors of FTX reserve the right to bring actions in Bankruptcy Court to seek the return of such payments, with interest accruing from the commencement date. of any action ".
Based on data from the Federal Elections Commission (FEC), Coindesk, a cryptocurrency news site, has identified 196 US Senators and Representatives who have accepted FTX donations. Meanwhile, Unusual Whales, a retail trading platform, has compiled its own tally of the political recipients of FTX money, who donated to whom, and whether or not the money was returned.
Top recipients of FTX funds by political color
Sam Bankman-Fried's largest donations to Democratic PACs (blue), GOP PACs (red), and independent PACs (purple).
According to legal experts, it would likely be wise for politicians to comply with FTX's lawyers' request before things go to court.
“John Ray [CEO of bankrupt FTX] and his team will likely file fraudulent transfer lawsuits against politicians and PACs if they don't return the funds, as FTX has repeatedly requested,” Thad Wilson, partner and CEO, told The Epoch Times. bankruptcy expert at King & Spalding. While politicians might have a legal defense, he said, going to court would be expensive and those who received just a few thousand dollars "would probably be better off getting their money back." For larger beneficiaries, such as PACs and political parties, the economic situation could be very different”.
Wilson cited the precedent of Craig Berkman, a financier accused by the SEC of defrauding investors, who had donated to the presidential campaigns of John McCain, Mitt Romney, Mike Huckabee and Rudy Giuliani in 2007-2008.
“After Berkman filed for bankruptcy in 2009, many of the campaigns and candidates who had received funds from Berkman were sued and/or returned the funds to Berkman's bankruptcy trustee,” Wilson said. So the question of the bankruptcy administrator of FTX is justified and risks putting many US politicians in difficulty, especially from the democratic side.
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FTX Bankruptcy: Lawyers Ask Funded Politicians To Pay Back Tens Of Millions Of Dollars! comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/bancarotta-ftx-gli-avvocati-chiedono-ai-politici-finanziati-di-restituire-decine-di-milioni-di-dollari/ on Sun, 12 Feb 2023 10:09:36 +0000.