FTX Debtors Recover $14.5 Million Through Small Claim Settlements
FTX debtors secured approximately $14.5 million in November through small claim settlements, primarily from political donations, according to a Dec. 10 court filing.
Political Donations Leading to Recovery
- The recovered funds included $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.
Bankruptcy Proceedings and Recovery Efforts
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.
Bankman-Fried, the exchange’s former CEO, heavily invested in lobbying and political contributions to gain influence in Washington. 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.
Legal Actions and Recovery of Misallocated Assets
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.
Preparing for Creditor Reimbursements
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.
