FTX scrambles to recover controversial political contributions

FTX scrambles to recover controversial political contributions

TL;DR Breakdown

  • In a recent announcement, the now-defunct FTX revealed that it is trying to retrieve some questionable political payments.
  • It has been demanded of these recipients that they pay back the money to FTX by the 28th of February at the very latest.
  • The business has issued a warning to consumers about con artists who use the promise of asset return to lure people in.

A new statement from the bankrupt company reveals that FTX Trading and its related debtors have sent confidential communications to political personalities, political action funds, and other receivers of donations or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried, or other officers or principals of the FTX Debtors.

The agreement

It has been required of these beneficiaries that they repay the monies to the FTX Debtors by the 28th of February in 2023. In the messages, the Debtors have requested the recipients to return the funds voluntarily by contacting FTXrepay@ftx.us. 

As stated in the announcement made by the firm on December 19, 2022, the Debtors came to an agreement on how the monies should be returned and made the necessary preparations.

If the payments are not returned freely, the FTX Debtors retain the right to initiate measures before the Bankruptcy Court to demand the return of such payments with interest accumulating from the date any action that is initiated.

In the event that the payments are not returned voluntarily, the Debtors reserve the right to seek the return of such payments with interest.

It is important to remind recipients that even if they make a payment or gift to a third party (such as a charity) in the amount of any payment received from a contributor for the company, this does not preclude the Debtors from pursuing recovery from the receiver or any later transferee.

Latest on the FTX saga

The scandal surrounding FTX continues to develop, as new developments happen almost every other day. Huobi Global, the largest cryptocurrency exchange in China, said on February 5 that it would begin listing FTX’s Users’ Debt (FUD) for spot trading beginning this week.

Early this morning, the company announced on its website that it would begin accepting withdrawals for FUD beginning on Monday, February 6th.

The FTX Users’ Debt token was produced by DebtDAO as a bond token for the best-quality creditors participating in the event. Huobi is the only company that is delivering this premium-grade FTX debt instrument to its customers.

During the period known as “early bird issuance,” the failed company will offer the debt at a reduced price. It is important to note that one FUD will be worth $1 and that the first issue and liquidity for the FUD will be 20 million.

In addition, the cryptocurrency exchange that has since gone bankrupt has admitted that its clients have recently been the target of a series of scams and frauds perpetrated by third parties.

FTX has issued a warning to its consumers about recent scam efforts by criminals. These scams include requesting customers for money, fees, payments, or account passwords.

The defunct company said that its debtors and agents would never ask consumers to pay fees or submit account passwords in connection with the return or probable return of client assets, and it recommended potential victims to contact the official debtors email address to establish the veracity of the communications.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Jai Hamid

Jai Hamid

Jai Hamid is an enthusiastic writer whose current area of interest is the blockchain sector. Whenever she is not reading or writing, you can find her tending to her plants in the garden. She strongly believes that crypto is going to transform the world for the better.

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