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The pro-Democratic Senate Majority Political Action Committee has declared that it will return $3 million in donations made during the 2022 midterm elections by disgraced FTX FTT/USD founder Sam Bankman-Fried and former head of engineering Nishad Singh.
These donations had been intended to support Democratic candidates in Senate races nationwide.
What Happened: According to a report by CNBC, the super PAC has determined it is in its best interest to return the funds and avoid any potential conflicts of interest. As such, a $1 million contribution from Bankman-Fried will be returned, as well as a $2 million contribution from Singh.
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“Senate Majority PAC previously set aside the contribution amounts from Sam Bankman-Fried and Nishad Singh with the intention of returning the funds once we receive proper direction from federal law enforcement officials based on their legal proceedings,” a PAC spokesperson reportedly said.
FTX’s new management on Monday said it would potentially take legal action to reclaim political donations made by the company or its affiliates.
Following the arrest and indictment of SBF, three leading Democratic organizations have pledged to repay more than $1 million of political contributions. In its statement, FTX urged the recipients of these funds to “make arrangements for the return of such payments” or face legal action from the exchange to recover funds with interest.
SBF was the second-largest donor to the Democratic Party for the 2022 midterm elections, with donations totaling $36.8 million. He also contributed more than $5.2 million to President Joe Biden‘s 2020 presidential campaign.
Price Action: At the time of writing, FTT was trading at $0.93 down 3.36% in the past 24 hours, according to Benzinga Pro.
Photo: FTX Bankruptcy from flickr.
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Image and article originally from www.benzinga.com. Read the original article here.