NewsletterJust In: SBF Political Donations Can Be Reclaimed As ‘Fraudulent Transfers’
Sam Bankman-Fried News: While experts predict that SBF could likely face jail term over misuse of crypto funds, the onus is now on his political donations. In the first week of November and days before the FTX collapse, Sam Bankman-Fried made headlines for his donations in the U.S. Midterm Election 2022. In fact, reports suggested that SBF was the largest donor from crypto industry and third largest contributor overall.
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SBF Political Donations Can Be Reclaimed: XRP Lawyer
XRP lawyer John Deaton said earlier that it was only a matter of time that SBF went to jail. He said it is only a question of when will SBF go to jail until specific evidence is found. In a latest, Deaton also said FTX can approach those who received its funds 90 days before it filed for bankruptcy. This could mean all the political beneficiaries of SBF can be hit with preference claims.
“Anybody or any entity that received funds in the 90 days before FTX filed for bankruptcy can be hit with a preference claim. This also could include costumers who withdrew $5B from FTX before it filed for bankruptcy.”
‘Fraudulent Transfers’
Also, the political beneficiaries can also be approached with ‘fraudulent transfer claims.’ The political donations made by SBF could potentially count as fraudulent transfers and must be returned, he added in a tweet. The XRP lawyer made the comments following reports that SBF and FTX donated $70 million to various politicians for the elections, not too long ago before the bankruptcy filing. The FTX collapse has since had a cascading effect on all cryptocurrencies, which took a major hit in an already bad bear market environment. The contagion effect from FTX led to several cryptocurrencies reaching new lows in the last two years.
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