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The Democrat candidates and political action committees that received funding from the doomed cryptocurrency exchange FTX will be required to return the money swindled from investors according to an attorney placed in charge of the firm’s finances.

According to The Daily Wire, Sam Bankman-Fried the Democrat mega-donor and former billionaire CEO of FTX is now facing charges that could send him to prison for the rest of his life. He was the second-largest donor in the 2022 election just behind George Soros, having spent approximately $40 million on various campaign contributions.

FTX collapsed over the course of a weekend, reducing Bankman-Fried’s personal net worth to near zero when he completed a massive transfer of $10 billion in assets to another firm owned by him: Alameda Research as reported by Reuters.

The new CEO of FTX John Jay Ray III, who had gained experience clawing back millions of dollars in funding for those defrauded in the Enron scandal of the early 2000s, has told reporters that he will be pursuing the funds to compensate the victims of FTX as well.

In a Dec. 19 statement, FTX told the public, “Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from an FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee.”

This could spell trouble for any politicians who received funds donated from FTX to charity in an attempt to distance themselves from the scandal. They will still be subject to having those funds clawed back to FTX in order to assist defrauded investors.

It continued,

“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.”

The Wall Street Journal reported that Ray was able to successfully recover approximately 52 percent of lost funds to all of Enron’s creditors after the collapse of the energy conglomerate twenty years ago.

During a damning testimony before Congress Ray called the actions of Bankman-Fried, “just old fashioned embezzlement. This is just taking money from customers and using it for your own purpose. Not sophisticated at all,” according to¬†CNBC.

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