The new management of the now bankrupt cryptocurrency trading platform, FTX, has warned politicians and political organisations to return the funds donated to them by the crypto or its founders before it went bankrupt last year.
According to the statement by FTX, the company, which was once valued at $32bn, had sent ‘confidential messages’ to political figures, political action funds and other recipients to, on or before February 28, refund all donations they received or face legal repercussions.
According to the report, this comes after a December 19 announcement by the FTX Debtors that they have established arrangements for recipients of such funds to return them voluntarily.
The statement partly reads, “to the extent, such payments are not returned voluntarily, the FTX debtors reserve the right to commence actions before the Bankruptcy Court to require the return of such payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee.”
In a statement released in January, the company said it had identified $1.7bn of cash, $3.5bn of crypto assets and $3 million of securities with FTX’s new CEO, John Ray III, stating that it was an arduous task to assess the financial position of the firm.
