US Department of Justice seeks return of FTX-linked political donations

TL;DR Breakdown

  • The Department of Justice (DOJ) has called for lawmakers to return political donations linked to FTX, a directive several congressional campaigns have followed.
  • The move comes amid legal scrutiny around FTX’s bankruptcy and its founder Sam Bankman-Fried, prompting lawmakers to redistribute FTX-derived contributions.

A new ripple in the political fundraising landscape has emerged as the Department of Justice (DOJ) urges lawmakers who received campaign contributions linked to the cryptocurrency exchange FTX to return the donations. Several Congressional campaigns, including Rep. Bob Latta, R-Ohio, and Lori Chavez-DeRemer, R-Ohio, have reportedly complied with the DOJ’s request.

The move comes after substantial donations by Ryan Salame, former chief executive of FTX Global Markets, who contributed close to $23 million to candidates during the 2022 midterm election cycle. These funds were largely directed towards Republican candidates, with Bob Latta’s campaign receiving a hefty $2,900.

In an unexpected move, these funds have now been voluntarily surrendered, intending to offer compensation for those defrauded, according to a spokesperson from Lori Chavez-DeRemer’s campaign. Reps. Marc Molinaro, R-N.Y., Elise Stefanik, R-N.Y., and Brian Fitzpatrick, R-Penn., have also reportedly relinquished their FTX-linked donations to US Marshals, further indicating a broader legislative pushback against the cryptocurrency exchange’s political influence.

Unraveling the political impact of FTX donations

This development comes after FTX’s bankruptcy and the federal charges leveled against its founder Sam Bankman-Fried, who is currently confronting 13 federal charges. The news has stirred several lawmakers to divert FTX contributions received from Bankman-Fried. Sen. Dick Durbin, D-Ill., and Rep. Jesús “Chuy” García, D-Ill., declared their intention to donate the $2,900 they received from the FTX founder in November following the company’s bankruptcy filing.

Similarly, Rep. Ritchie Torres, D-N.Y., has reported contributing his FTX-linked funds to a local charity for holiday food distribution. However, it remains unclear whether such funds can be clawed back from charities, even as Jason Lilien, a partner at Loeb and Loeb, posits that charities are not immune from such efforts.

While such surrendered, clawed-back funds are typically allocated towards reimbursing customers, victims, and creditors, the current status of these broader endeavors remains opaque. As such, the fate of numerous charities that have received political donations or direct contributions from Bankman-Fried hangs in the balance.

Despite the recent legal turbulence, Bankman-Fried’s contributions during the last election cycle have propelled him to become the Democratic Party’s second-largest individual donor, having donated an astonishing $39.8 million.

As the DOJ spearheads efforts to recover FTX-related contributions, its actions throw into sharp relief the fraught intersection of cryptocurrency, political fundraising, and regulatory oversight.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:US Department of Justice seeks return of FTX-linked political donations

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月19日 10:28
Next 2023年5月19日 11:03

Related articles

  • Unpacking SpaceX Bitcoin 2021-2022 sales worth $373M

    TL;DR Breakdown Elon Musk disclosed SpaceX’s Bitcoin holdings in 2021 following an SEC filing revealing Tesla’s intention to acquire $1.5 billion worth of the crypto. Crypto scams with detailed attention to SpaceX and Elon Musk surge flooding the crypto markets – Be weary. Elon Musk takes a keen look at Vitalik Buterin’s detailed tech report on “Community Notes.” Buterin endorsed X’s “Community Notes” feature emphasizing its relevance and relationship to “crypto values.” Description SpaceX reportedly sold Bitcoin worth approximately $373 million that it acquired beginning in 2021. According to a Wall Street Journal report published on August 17, SpaceX recorded Bitcoin holdings worth $373 million on its balance sheet in 2021 and 2022 but has since sold the cryptocurrency.  According to documents viewed by the news organization, the … Read more SpaceX reportedly sold Bitcoin worth approximately $373 million that it acquired beginning in 2021. According to a Wall Street Journal report published on August 17, SpaceX recorded Bitcoin holdings worth $373 million on its balance sheet in 2021 and 2022 but has since sold the cryptocurrency.  According to documents…

    Article 2023年8月18日
  • Arbitrum price analysis: Bears persist, resulting in price levels dropping to $1.16

    TL;DR Breakdown The recent Arbitrum price analysis shows a decrease in price. Price levels have dropped down to $1.16 today. Support for ARB is present at $1.08. Today, the Arbitrum price analysis points towards a decline in its value. The bears have been continuously adjusting their downtrend cycle, which is clearly visible on the price charts. The market has been predominantly influenced by the downtrend, leading to a dismissal of any potential upward price movement following a price spike, as the gains made are swiftly erased by selling pressure. The bearish momentum has experienced a notable surge, as indicated by the latest update showing a decrease in price to $1.16. This suggests that a further downtrend is imminent, and it is anticipated that the future may bring unfavorable conditions for the cryptocurrency market in the coming days. ARB/USD 1-day price chart: Arbitrum experiences its first drop after yesterday’s spike The 1-day Arbitrum price analysis chart is indicating an unexpected bearish trend in the market. This downturn has disrupted the previously sustained bullish momentum. Despite this, the coin still managed to…

    Article 2023年6月12日
  • Aptos price analysis: APT soars to $8.11 after a successive bullish run

    TL;DR Breakdown Aptos price analysis is giving bullish hints today. The support level for APT is present at $7.85. APT/USD is facing resistance at $8.15. The Aptos price analysis is on the bullish side today. Bulls have taken the price up to $8.11 today after a continuous decline for the past week,  and it looks like the trend will continue. The price is currently facing resistance at $8.15, but if it breaks through, it could potentially reach up to $8.30 or even higher. On the other hand, if it fails to break through, the support level of $7.85 could come into play and take the price down again. Source: Coin 360 Most of the cryptocurrencies are currently in the bull market, and APT has been no exception. Top coins like Bitcoin, Ethereum, and Binance Coin have all been on the rise, and Aptos is catching up. The 24-hour trading volume is still in a decrease as the buyers are taking a cautious approach. The market capitalization is currently at 1.60 billion, and with an increase of 1.09 per cent in…

    Article 2023年5月29日
  • Binance inks deal to launch an exchange in Thailand

    TL;DR Breakdown Binance has inked a deal to set up a crypto exchange in Thailand before the end of the year. The exchange wants to showcase the potential of blockchain via its partnership with Gulf Energy. Cryptocurrency exchange Binance continues its global expansion by obtaining regulatory approvals in Thailand. Gulf Binance, a joint venture between the crypto exchange and Gulf Innova, the innovation arm of Gulf Energy, has been granted digital asset operator licenses by Thailand’s Ministry of Finance. These licenses authorize the firm to operate a regulated crypto exchange under the supervision of the country’s Securities and Exchange Commission. Binance will set up the exchange by Q4 In an announcement made on May 26, the exchange revealed that Gulf Binance plans to launch a digital asset exchange in Thailand by the fourth quarter of 2023. This new venture will combine the crypto firm’s expertise in digital assets with Gulf’s extensive knowledge of the Thai market. The two companies have been collaborating closely for over a year, exploring the possibility of establishing a local digital asset exchange. Gulf Energy, led…

    Article 2023年5月28日
  • Cardano price analysis: ADA plummets to $0.3655 as bearish pressure intensifies

    TL;DR Breakdown Cardano price analysis shows a bearish market sentiment. Resistance level for ADA is present at the $0.3723 mark. Support for ADA is seen at the $0.3645 level. Today’s Cardano price analysis shows a bearish market sentiment. The price of ADA fell to $0.3655, indicating a decline continuation in the crypto asset’s value and increasing bearish pressure from the market. ADA touched the $0.3798 mark on 18th May and since then it has been on a downward spiral. The resistance level for ADA is present at the $0.3723 mark. The buying pressure around this level has been very weak which has resulted in the price struggling to breach it. The support for ADA is seen at the $0.3645 level, but any further decline in prices could see a breach of this mark as well as a further drop in prices. Cardano price analysis daily chart: ADA face strong resistance at the $0.3723 mark The 1-day Cardano price analysis chart shows that the bears are dominating the market and prices have been consistently declining for the past few days. ADA…

    Article 2023年5月21日
TOP