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Bankruptcy management crypto exchange ftx wants to recover some of the charitable donations made by its former CEO sam bankman-fried (sbf), the reported Wall Street paper.
It was very difficult to identify the assets and liabilities of the business. The bankruptcy expert remarked that he was always trying to understand all the bank accounts used by the exchange. However, there are certainly more liabilities than assets involved in the exchange, hence efforts to recover money from a variety of sources. Given SBF's generosity with money, continuing to donate with clients' funds could be a good option.
Some of those who received donations from sbf and ftx have already approached the new leadership to return the money, while ftx encourages others to do likewise.
FTX is calling on beneficiaries to return donations.
A press release from the exchange stated that it would “commence actions before the bankruptcy court” against those who don’t return the donations and will have to pay back with interest.
Some of the charities that have returned funds included the Alignment Research Center, a nonprofit focused on machine learning. The $1.25 million ftx grant was returned, saying that the money is "morally (if not legally) owned by FTX clients or creditors." in addition, propublica is giving back the $1.6 million it received to build a better future, Family organization of SBF.
Meanwhile, there are concerns that some of the donation recipients have already spent it. Examples include the Good Food Institute and Stanford Medicine.
Also, there are legal issues, like when ftx got insolvent and if ftx foundation are the same. All of these issues need to be addressed to ensure that recipients are required to repay funds.
The largest charity for the Exchange Future Fund has committed more than $160 million to not-for-profit organizations. Researchers, young biotech companies, educational programs, and so on. The government has already provided funding to some of these organizations.
Donated by SBF to organisations and politicians.
SBF also donated millions to several organizations and politicians. In a famous interview, he said that he could spend as much as $1 billion for the 2024 presidential election. He is also accused by federal prosecutors of breaking election financing laws.
However, its spokesman said that all donations made by sbf came from commercial profits and not from client funds. But many are accusing him of using customer funds to buy influence with donations.
During this time, certain political groups who received donations from sbf returned the funds. BeInCrypto reported that three Democrats groups would return over $1 million donated to them by Sam Bankman-Fried.
