Politicians were requested by FTX Group in confidential letters to refund donations they had previously received from Sam Bankman-Fried, the former head of the exchange.
Documents filed in court indicate that it may be close to $93 million.
Eight criminal crimes were brought against Bankman-Fried by the US prosecutor’s office as part of the inquiry into the stock exchange’s demise.
One of them is breaking US regulations governing the funding of political campaigns. To avoid the $25,000 yearly cap, Bankman-Fried reportedly made gifts on behalf of other persons. The former FTX CEO entered a not-guilty plea.
By February 28, 2023, FTX Group demanded that the receivers of the monies repay them. The news release discusses the potential of debtors suing for a refund that includes interest.
One in three current US Congressmen received money from Bankman-Fried, according to CoinDesk.
The former CEO of FTX contributed $5.22 million to Joe Biden’s 2020 campaign, making him one of his biggest backers.