Three well-known Democratic political organizations have declared their intention to repay the one million dollars Sam Bankman-Fried contributed for the 2020 and 2022 election cycles.
A closer look at the situation
The groups will reimburse former FTX clients who lost money due to the exchange’s failure. The claim comes just a few days after the ex-CEO was detained for allegedly embezzling money from clients and giving unlawful political contributions to politicians.
Bankman-Fried would be repaying 815,000 USD, according to a spokesman for the DNC (Democratic National Committee). Additionally, after consulting with the court, the party’s House and Senate campaign committees will set aside a total of 353,000 USD for refunds.
A wide variety of other political groups, many of which haven’t yet said how they’ll move forward after taking the FTX founder’s sizeable donations during the 2022’s election season, are put under further pressure as a result of the Democrat’s choice to return the cash.
They could have made this choice in order to separate themselves from the previous CEO’s wrongdoings.
According to reports, Bankman-Fried has already given almost $40 million to committees and groups that mostly favor democrats this year alone.
Additionally, the disgraced CEO stated that they donated funds to the Republican party, but in reality, these donations were made through charity organizations that don’t reveal the names of their contributors.
The problems with Sam Fried Bankman
After the company stopped allowing client withdrawals and subsequently filed for bankruptcy, the previous FTX CEO was accused of mismanaging consumers’ funds and sending payments to his subsidiary company, Alameda Research LLC.
According to a source, American prosecutors then started looking into the potential reasons why the disgraced CEO would have sought bankruptcy protection.
The study said that despite his admission of making mistakes while running the FTX exchange, Bankman-Fried has continuously denied abusing customers’ money.
The collapse of the FTX exchange led to several disclosures involving Bankman-Fried. Another report claims that Bankman-Fried acquired 300 million USD from the latest funding round of FTX.