Crypto: FTX Raises 14 Million Dollars From Political Organizations

In the twists of the FTX scandals, an unexpected chapter sheds light on the saga: the recovery of 14 million dollars in political donations. This return of money, almost surreal, could mark a key step in the attempt to recover the bankrupt cryptocurrency exchange.

The debtors of FTX, players in an unexpected reimbursement

Amid judicial turmoil, the debtors of FTX have taken the lead to recover part of the funds allocated to political parties.

The latter, eager to dissociate themselves from the shadowy areas surrounding Sam Bankman-Fried, the former CEO of FTX, returned contributions totaling 14 million dollars.

Among the main donors are the House Majority PAC (6 million dollars) and the Senate Majority PAC (3 million dollars), as well as various Democratic parties from American states.

This reimbursement is far from trivial. It illustrates how the debtors of FTX are striving to maximize the recovery of assets lost in the company’s collapse.

For reference, FTX filed for bankruptcy in November 2022, plunging millions of users into uncertainty. These donations, now under the control of the debtors, strengthen the hope of reducing creditors’ losses.

However, this restitution comes with legal nuances. The donations, made under Bankman-Fried’s direction, would have been funded by misappropriated user funds. This accusation, although withdrawn from the official charges against SBF due to complications related to his extradition, has only fueled controversies.

A ray of hope for FTX creditors

The recovery of these 14 million might seem anecdotal given the billions that disappeared in the FTX debacle. Nevertheless, it represents a significant advancement in the restructuring process overseen by the Delaware bankruptcy court.

In October 2024, the judge assigned to the case approved a reorganization plan promising to repay up to 119% of the value of user claims. This outcome, although optimistic, depends on the success of initiatives like this, where debtors track every misallocated dollar.

This case also highlights the central role of political parties in this scandal. Their decision to return these sums not only reflects a desire to avoid public embarrassment, but also a sense of responsibility towards citizens and the crypto ecosystem.

As the crypto industry struggles to recover from the fallout of the FTX affair, this restitution of funds serves as a poignant reminder: the shadow of regulation looms larger than ever. For political actors as well as crypto businesses, this case illustrates the importance of financial transparency and vigilance regarding the origins of donations and investments.