Courts may claw back $73 million in political donations from Bankman-Fried

At least $73 million of political donations tied to Sam Bankman-Fried’s FTX may be at risk of being clawed back as bankruptcy lawyers sort through the remnants of his crypto empire in search of assets to repay creditors.

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The wide-ranging contributions from Bankman-Fried and two of his top lieutenants, Ryan Salame and Nishad Singh, include more than $6 million to a super political action committee for House Democrats, $3.5 million for the GOP’s Senate Leadership Fund and $3 million for a fund that backs Senate Democrats.

Washington’s brief but intense flirtation with FTX donors as crypto executives sought to influence industry regulation may end up backfiring spectacularly, damaging the reputations of politicians who benefited from large contributions while some FTX exchange users face losing their life savings. Crypto billionaires — who came with millions in campaign cash — were able to convince many lawmakers that the nascent industry needed a light regulatory framework in order to innovate, but FTX’s implosion has now cast doubt on that.

It’s another layer to the fallout from FTX’s implosion.

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