FTX Grants To US Legislators To Be Withdrawn At DOJ's Direction

FTX Grants To US Legislators To Be Withdrawn At DOJ’s Direction

Updated: 18 May 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Recent news reports suggest that FTX, the popular cryptocurrency exchange, will withdraw its grants to US legislators at the direction of the Department of Justice (DOJ).

Representative Bob Latta, a Republican from Ohio, confirmed that his campaign voluntarily returned the funds after being notified by the Department of Justice.

This transfer of funds was completed earlier this year. Similarly, a spokesperson for the Ohio Republican Party disclosed that a campaign supporting Lori Chavez-DeRemer also redirected FTX donations to the party.

Lawmakers Surrender FTX-Related Donations to US Marshals

Reports indicate that Representatives Marc Molinaro and Elise Stefanik from New York, along with Representative Brian Fitzpatrick from Pennsylvania, have chosen to transfer FTX-related donations to the US Marshals. Previously, several other lawmakers, including Senator Dick Durbin and Representative Jesús “Chuy” García from Illinois, as well as Representative Ritchie Torres from New York, among others, had announced their intentions to either possess or donate FTX contributions.

Lawmakers pledged to accept political contributions from Sam Bankman-Fried, the bankrupt exchange founder facing federal charges. The surrender of funds follows this pledge. The U.S. Southern District of New York trust law office contacted Marc Elias, a Democratic election attorney. The office requested specific details regarding donations to the SBF. The purpose of surrender and recovery funds is to reimburse customers, victims, and creditors.

FTX filed three lawsuits in response to the investigations into political contributions. The lawsuits aim to regain the company’s shares from SBF and its associates. FTX seeks to recover funds from former founders and executives of Embed. The former CEO of FTX is the second-largest individual donor to the Democratic Party. The CEO reportedly contributed up to $39.8 million. The investigations into political contributions have attracted significant attention. Other members of both the Democratic and Republican parties received similar emails.