Crypto Biz: FTX clawbacks, Genesis silver lining?
Remember when Sam Bankman-Fried admitted to being a significant donor to the Democratic and Republican parties? Well, the recipients of the tainted money have been formally requested to return the funds to FTX’s creditors. So far, we know of three prominent Democratic groups — the DNC, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee — that have returned SBF-linked donations in December 2022. Will the rest follow?
As FTX seeks clawbacks, the Digital Currency Group and its bankrupt subsidiary, Genesis Global Trading, have agreed to a restructuring plan. The good news is that Genesis account holders will get most of their money back if the deal is finalized.
This week’s Crypto Biz revisits familiar stories surrounding FTX and the Digital Currency Group and breaks down crypto’s failure to win public trust.
The rise and fall of Sam Bankman-Fried was shrouded in extreme controversy after we learned the FTX founder was a massive donor to the Democratic and Republican parties. Now that the bankrupt FTX is recovering cash and liquid cryptocurrencies, the company’s new management wants to recover all political donations from SBF and his cronies. “FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors,” wrote FTX attorney Andy Dietderich. “These recipients are requested to return such funds to the FTX Debtors by February 28, 2023.”
Research suggests that the price of Bitcoin was more closely linked to FTX developments than macro events throughout the final quarter
Read more on cointelegraph.com
