Following the bankruptcy of FTX, the vast majority of political action committees (PACs) that received donations from members of the crypto exchange decided to return these funds. However, a few PACs are still resisting, much to the dismay of the Biden Administration.
Several PACs have not returned donations they received from former crypto exchange executives
In recent months, the Biden Administration has increased its efforts to negotiate the return of $13.25 million in donations made by former executives of the FTX exchange to several political action committees (PAC).
Last week, Judge Lewis Kaplan in charge of the case targeting the crypto platform and having led the trial of its CEO, Sam Bankman-Fried, agreed that the US government continue to negotiate with the affected PACs to have these funds returned.
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Concretely, the Biden Administration asked for more time to “ discuss with the PACs “. Thus, the judge leaves until January 15 to the American government to find common ground with the PACs concerned.
Among the entities with which the US government negotiates are Senate Majority PAC, Future Forward PAC and Future Forward USA Action, Emily’s List/Women Vote and GMI PAC. All these PACs are close to the Democratic Party or support ideas similar to those supported by Democrats.
These $13.25 million were paid to these groups by SBF or by former FTX CTO Nishad Singh. The latter declared that these donations had been made at the request of the ex-CEO of the exchangesometimes signing blank checks for the PACs to write in the amount they wanted.
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According to documents in the possession of the courts, the Future Forward PAC received $6 millionincluding 5 million from SBF and the remaining million from Nishad Singh. The GMI PAC received $2 millionwhile the Senate Majority PAC received $3 million in total: $2 million from Nishad Singh and $1 million from Bankman-Fried. Finally, Women Vote received $2.25 million from Nishad Singh.
Other PACs had received similar donations from Nishad Singh and Sam Bankman Fried. However, these groups returned their donations in the weeks, if not months, following the collapse of the exchange.
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Note that the 2 FTX executives were each tried in their trial. If the former technical director of FTX had received a prison sentence, this one saw his sentence withdrawn after having collaborated with the authorities against SBF. Nishad Singh will only be under supervised release for the next 3 years.
For his part, the founder of the FTX empire was sentenced to 25 years in prison. A substantial sentence, but lower than the maximum penalty of 110 years. However, the ex-CEO of the crypto platform has not given up since he filed a request for appeal last April and constantly calls for a new trial.
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Source: Biden Administration request, OpenSecrets
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I’m not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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