Top Dems On Hook As New FTX Boss Vows To Claw Back Crypto Exchange’s Donations

Democrats who accepted campaign donations crooked cryptocurrency exchange FTX will have to return the money, the attorney put in place to sort out the company’s finances warned.

Disgraced FTX founder Sam Bankman-Fried, who is facing charges that could put him behind bars for life, was the Democrats’ second-biggest donor in the 2022 election cycle, dropping $40 million on their campaigns. John Jay Ray III, the new FTX boss, has signaled that he will pursue the funds to help victims of Enron’s collapse in the early 2000s.

“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee,” The company said In a Dec. 19 Statement. “To the extent such payments are not returned voluntarily, the FTX Debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.”

Among the recipients of Bankman-Fried’s largesse were incoming House Minority Leader Hakeem Jeffries, senators Cory Booker, of New Jersey; Joe Manchin, of West Virginia; Debbie Stabenow, of Michigan; Dick Durbin, of Illinois; and Patty Murray, of Washington.

The Senate Majority PAC is an organization that works to elect Senators. DemocratsLast week,, announced that it would return $3 million of donations by Bankman-Fried FTX crony Nishad Sharma. Many Democrats have spoken out about their donations from Bankman Fried. they intend to give the money to charity. But Ray, an insolvency specialist who took control of the company on Nov. 11, said it isn’t theirs to give away.

FTX under Bankman Fried also gave millions of dollars in donations to Stanford Law professor mom and his brother, Bankman Fried. Gabe Bankman-Fried’s charity, Guarding Against Pandemics, and a Super PAC fun by Barbara Fried, Mind the Gap, in turn donated to Democrat-backed candidates and causes.

When the Bahamas-based crypto currency exchange crashed, thousands of investors lost their money. Some even their lives savings. Prosecutors from the Southern District of New York allege Bankman-Fried looted billions of dollars from his clients’ accounts to buy real estate, donate to politicians, and fund his one-time girlfriend’s failed hedge fund. Bankman-Fried is currently under house arrest at his parents’ home, free on a $250 million dollar bond.

Bankman-Fried, before his dramatic fall from grace was considered a darling among the Left. Bankman-Fried had a net worth of $25 billion. He gave to liberal causes while claiming to believe in the philanthropic philosophy that pursuing more profits is better than giving away. But Bankman-Fried later said he cynically adopted the Left’s language as “dumb game we woke Westerners play,” Even as he managed the company to its final days.

“Never in my career have I seen such an utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever,” Ray stated in a Dec. 13 interview statement The House Financial Services Committee.

Ray returned about 52 cents on the dollar to all of Enron’s creditors after the Texas energy giant collapsed in the early 2000s, according to a Wall Street Journal report.