- SBF was reportedly the biggest crypto industry contributor and the third greatest donor.
- FTX had given $70 million to different lawmakers just before the bankruptcy filing.
The ultimate responsibility is now on SBF’s political contributions, despite predictions from experts that he would likely face prison time for misusing crypto cash. Sam Bankman-Fried’s contributions to the U.S. Midterm Election 2022 made news in the first week of November, just days before the FTX collapsed. SBF was reportedly the biggest crypto industry contributor and the third-greatest donor overall.
John Deaton, an attorney for XRP, has previously predicted that SBF would soon go behind bars. Before concrete proof is uncovered, he claimed, it’s just a matter of time before SBF is arrested and sent to prison.
Fraudulent Transfer Claims
Deaton said in his recent statement that FTX may contact creditors who received money from the company during the last 90 days before it went bankrupt. Consequently, it’s possible that all SBF’s political beneficiaries will be subject to preference claims.
In addition, “fraudulent transfer claims” may be filed against political beneficiaries. He noted in a tweet that SBF’s political contributions may be considered fraudulent transfers and hence be repaid.
The XRP attorney made the remarks after news surfaced that SBF and FTX had given $70 million to different lawmakers just before the bankruptcy filing. All cryptocurrencies, including FTT, have suffered greatly in the current bear market as a result of the FTX crash. Numerous digital currencies have hit all-time lows not seen in the last two years, and FTX is widely seen as the source of the widespread decline.
On the other side, the Bahamian government has criticized FTX’s newly appointed CEO, John J. Ray III, for his role in imposing certain limitations on the corporation. New tensions and an intensifying conflict have arisen about what to do with FTX’s ruined empire.