you American politicians who received donations from the bankrupt exchange FTXfounded by Sam Bankman-Fried (SBF), must repay all amounts by the end of February 2023, under penalty of legal proceedings.
According to the new FTX management, all politicians receive letters containing the conditions.
An email has even been created to help politicians with questions about return procedures. The new announcement follows a line already established in December 2022, in which politicians must voluntarily repay the amounts.
Politicians must return money to FTX customers, charitable donations with banned money
Politicians who have received support from FTX should contact us at “ftxrepay@ftx.us” to request a refund.
According to a note released last Sunday (5) by the FTX Communications, any politicians who fail to repay the amounts will be processed for restitution with accrued interest.
“To the extent such payments are not voluntarily refunded, FTX Debtors reserves the right to file claims in bankruptcy court seeking the return of such payments, with interest accruing from the date an action is commenced.”
For example, in the American elections, even current president Joe Biden received support from SBF to put forward his candidacy. However, it is not clear whether Biden has received any letters requesting the return of funds sent by the FTX.
In a note, FTX debtors say that politicians cannot donate the amounts, not even to charities. If they do, they should also be prosecuted.
Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of a payment received from an FTX Contributor does not prevent FTX Debtors from seeking recovery from the recipient or any subsequent assignee. “
Politicians under pressure since December 2022
FTX filed for bankruptcy in November 2022 and since then the investigation into its activities has begun in a bankruptcy court in the United States.
When it was discovered that politicians were receiving donations from the cryptocurrency exchange, investors began hunting representatives for voluntary returns of values.
With the new deadline of February 28, 2023, the pressure on beneficiary politicians to return funds is increasing.
Customers expect the resource to help pay off the company’s debts, which recently claimed it could even return to the market. However, before the former brokerage can become operational again, it must first restore its structure and pass on confidence in the judicial recovery process.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
