tl;dr
FTX has recovered $14.5 million through small claim settlements, primarily from political donations, following more than two years of bankruptcy proceedings. The recovered funds include contributions from political action committees and organizations, with efforts led by the estate demanding the ret...
FTX has recovered $14.5 million through small claim settlements, primarily from political donations, following more than two years of bankruptcy proceedings. The recovered funds include $6 million from the House Majority PAC and $3 million from the Senate Majority PAC. Additional returns came from organizations like Forward Action Fund, Mind the Gap, and the People for the American Way, each contributing over $1 million. These efforts followed more than two years of bankruptcy proceedings, during which the estate demanded the return of funds linked to donations made under Sam Bankman-Fried’s leadership.
Reports indicate that FTX executives donated to nearly one-third of Congress, with Bankman-Fried himself giving at least $40 million to various political campaigns. After FTX’s collapse, many politicians sought to dissociate from the scandal, redirecting donations from the defunct exchange to charitable causes.
In recent months, the bankruptcy estate has been working to recover funds distributed to political entities, venture projects, and other recipients. FTX has also ramped up legal actions to retrieve additional funds held by other platforms. In November, the firm sued Binance and its former CEO, Changpeng Zhao, to recover $1.8 billion. Similar lawsuits targeted Crypto.com, KuCoin, and high-profile individuals, including former White House Communications Director Anthony Scaramucci.
These efforts reflect the bankrupt firm’s commitment to retrieving misallocated assets and are part of broader efforts to prepare for creditor reimbursements, set to begin in early 2025.