FTX and its associated debtors have sent out confidential letters asking politicians and other fund recipients to return donations made by the exchange. The amount that the company wants to collect in this way reaches 32 billion dollars.
The group, which called itself “FTX’s debtors,” did not disclose which parties were involved, but said the letters were sent to recipients who received grants from FTX or to the exchange’s former CEO, Sam Bankman-Fried.
Bankrupt exchange wants its money back
The application requested a refund by February 28 and provided an account to which recipients can return funds. As we read in the statement, even if the recipient used the funds to make payments or donations to third parties, including charities, this does not preclude the need for a refund.
This announcement follows FTX’s public requests in late December for recipients to voluntarily refund funds.
“To the extent such payments are not voluntarily returned, FTX debtors reserve the right to initiate bankruptcy court proceedings seeking the return of such payments, together with interest, from the date any action commences,” the statement said.
The collapsed stock exchange returned some of the money
In mid-January, lawyers for the FTX exchange told a bankruptcy court in the US state of Delaware that they had managed to recover some of the liquid assets. The value of cash, cryptocurrencies and other securities is estimated at approximately $5 billion.
The cryptocurrency exchange was once valued at $32 billion but collapsed after reports of financial irregularities eventually gave way to criminal and regulatory investigations that culminated in the arrest of founder Sam Bankman-Freed.
Former billionaire to stand trial
The founder of the FTX exchange, Sam Bankman-Fried, is suspected of money laundering and numerous frauds. According to Reuters, he had to use $4 billion of his clients’ deposits to pay off the debt of his company, Alameda Research.
Bankman-Fried pleads not guilty. He was released after being arrested last month on $250m (£208m) bail. But if found guilty, he faces more than 100 years in prison.
Two of his closest associates have already pleaded guilty and are cooperating in an investigation that has shocked the entire cryptocurrency industry. In an interview before his arrest, the 30-year-old former billionaire admitted his mistakes but insists his actions were not intentional.
Source: Wprost
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