John Ray III, the newly appointed Chief Executive Officer of FTX, also overseeing the proceedings for the company’s bankruptcy, has demanded that all companies, charities, and politicians who have received any money from FTX refund it.
Creditors and FTX threaten lawsuit
FTX and its creditors have written “private letters” to several public individuals and advocacy organizations in which they have threatened legal action.
According to a press release issued by FTX, any politician or group that does not make a voluntary refund faces the possibility of a lawsuit being filed in bankruptcy court to recover the money, along with the interest that has accrued since the beginning of any action, and the case could go to trial.
In December, the company allegedly made public its intention to pursue the recovery of hundreds of millions of dollars worth of political donations made to celebrities, charitable organizations, and politicians affiliated with the Republican Party and the Democratic Party. These political donations were allegedly made in the name of the company.
Not only did Bankman-Fried and other members of the leadership of FTX donate substantial sums to political causes, but they also endowed the FTX Foundation and the FTX Future Fund with money so that they could promote his interests. In October, the FTX Foundation claimed that it had donated 140 million dollars to various causes.
SBF and cohorts seized FTX client funds
Damian Williams, the United States Attorney for the Southern District of New York, charged Bankman-Fried and his associates with stealing billions of dollars in FTX client funds. This was allegedly done to spend the money on luxury residences, other investments, political contributions, and to assist Bankman-Fried’s hedge fund.
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