The cryptocurrency firm FTX has begun an effort to claw back payments made by its former management to politicians. FTX filed for Chapter 11 bankruptcy protection in the U.S. on Nov. 11, 2022. John J. Ray replaced Sam Bankman-Fried as FTX’s CEO.
The Oregonian has reported that a $500,000 contribution to the Democratic Party of Oregon PAC came from Nishad Singh, director of engineering at FTX.
FTX “intends to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced”, the company said on Dec. 19, 2022, sharing an email address – FTXrepay@ftx.us – that recipients could use to voluntarily return money.
“Recipients are cautioned that making a 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,” FTX added in a statement.
FTX.US made contributions totaling $21,882,932 in the 2022 election cycle, with 81.44% of that going to Democrats.
The Oregon Democratic Party hasn’t yet said what but will do so with Singh’s contribution. As of Jan. 5, 2023, the PAC had a cash balance of $333,139, according to the Oregon Secretary of State. That is down substantially from the $691,532 it had on hand as of Nov. 28, 2022, according to OpenSecrets.org.
My advice to the party. Take the high road. Don’t stall in hopes the public and the media will tire of the whole FTX affair. Repay the money. It’s the honorable thing to do.