Lawmakers, primarily Democrats, are under pressure to part ways with millions of dollars worth of donations from FTX founder Sam Bankman-Fried following the company’s spectacular collapse.
Bankman-Fried, 30, was vaunted by some as the second coming of legendary investor Warren Buffett and did not shy away from spending his fortune on politics. All told, Bankman-Fried spent nearly $40 million on campaigns this election cycle. Among those donating mainly to Democrats, he was second only to billionaire philanthropist and Republican bogeyman George Soros.
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But, in a twist, his entire cryptocurrency empire collapsed during the same week of the midterm elections, causing the company to declare bankruptcy and customers and investors to lose fortunes. As FTX faces several federal and congressional investigations into the possible misuse of funds and defrauding of customers, questions have arisen about whether the candidates and organizations Bankman-Fried bankrolled will end up giving up the money.
Some lawmakers have already said they are donating the money given to them by Bankman-Fried.
Those reluctant to give back the funds may be forced to do by a court, said Kathy Bazoian Phelps, a partner at Raines Feldman LLP.
“There is a legal basis potentially to seek the return of those monies that were…
