Former FTX Executives Asked To Return $13 Million In Political Donations

The U.S. government is negotiating the recovery of approximately $13.25 million in political contributions made by former FTX executives, according to a recent federal court filing.

What Happened: The government has asked for an extension until Jan. 15 to continue discussions with several political action committees (PACs) regarding the potential forfeiture of these funds.

Judge Lewis Kaplan, who presides over the criminal case against ex-FTX CEO Sam Bankman-Fried, approved the request.

The PACs involved include Senate Majority PAC, Future Forward PAC, Future Forward USA Action, Emily's List/Women Vote and GMI PAC.

These organizations generally support Democratic candidates or liberal causes.

The government's filing states it is seeking additional time to engage with these PACs about the return of funds that Bankman-Fried and his associates allegedly donated through fraudulent means.

According to OpenSecrets data, Bankman-Fried and Nishad Singh, former head of engineering at FTX, were the primary contributors.

Also Read: Bitcoin, Ethereum ETFs Record Over $600 Million Net Outflows Ahead Of Election Day

Singh testified that he made these donations on Bankman-Fried's orders, even signing blank checks for donations.

Singh, who cooperated with prosecutors, was recently sentenced to time served plus three years of supervised release, avoiding prison time after testifying against Bankman-Fried.

Detailed records show that Future Forward PAC received $1 million in Singh's name and $5 million in Bankman-Fried's name.

GMI PAC obtained $2 million, while Senate Majority PAC received $2 million from Singh and $1 million from Bankman-Fried. Additionally, Women Vote received $2.25 million from Singh.

In total, the donations to these groups amount to $13.25 million, although some funds may have been attributed to other donors.

Following FTX's collapse, various politicians and PACs have begun returning donations linked to Bankman-Fried.

CBS News previously reported that many of the organizations that received his donations intended to allocate the funds to other causes.

What’s Next: For a deeper dive into the intersection of cryptocurrency and political finance, insights will be shared at Benzinga’s Future of Digital Assets event on Nov. 19.

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