$1M of SBF's funding will be Returned to FTX victims
Three major Democratic political groups plan to repay more than $1 million in SBF-related political donations.
During the 2022 campaign cycle, Bankman-Fried was a megadonor who primarily supported Democrats.
SBF previously revealed plans to spend up to $1B to influence presidential election campaigns in 2024.
FTX Loses Over $1 Billion in Users' Funds
The meltdown of the crypto exchange FTX, which filed for bankruptcy
In the second week of September, has eroded both the trust and funds of its users.
As per reports, FTX lost at least $1 billion in users' funds, which were part of the $10 billion in funds that were secretly transferred to Alameda Research by the FTX founder.
An investigation into FTX is already underway in relation to the mismanagement of users’ funds, which experts believe will probably come to a conclusion and the users will undoubtedly receive their funds back.
In addition, three Democratic committees announced on Friday that they will refund more than $1 million in donations received from former FTX CEO Sam Bankman-Fried. This announcement brings a sign of relief among FTX users.
3 Democratic Committees Pledged to Return SBF’s Political Donations
The Democratic National Committee and two top Democratic campaign committees made the announcements just days after Bankman-Fried was arrested and charged with eight counts of fraud and campaign finance violations.
"In light of the claims regarding potential campaign finance violations by Bankman-Fried, we are setting aside funds to repay the $815,000 in donations received since 2020," a DNC spokesperson confirmed. "We will return as soon as we receive adequate direction in the judicial proceedings."
The Democratic Senatorial Campaign Committee and Democratic Congressional Campaign Committee have also pledged to refund the $103,000 and $250,000 in donations received from Bankman-Fried, respectively.
Meanwhile, the extent of Bankman-Fried's GOP donations is yet to be uncovered. As per recent reports, most Democratic campaigns that received donations from Bankman-Fried have pledged to return or donate the funds to charity.
Will returning $1M of SBF's funding restore the lost trust?
The announcement that political donations will be refunded to the crypto exchange FTX has brought a sense of relief among FTX users. However, the bankruptcy documents show that the company may owe up to $3.1 billion to more than 100,000 creditors.
This implies that the refund might help some users to get their funds back, but the trust in the platform remains eroded. Currently, Bankman-Fried is being held in a Bahamas jail without bail until a February hearing.
What do you think, will other democratic committees also refund SBF's donations? Share your thoughts in the comment section below.
