196 members out of 535 US senators have received money from FTX, according to a CoinDesk investigation. But only 53 members explained what they had done with this money.
New revelations in the FTX case. We already knew that the former head of FTX, Sam Bankman-Fried, had financed Joe Biden’s presidential campaign to the tune of $5 million. It was less known that many other politicians had also made use of it.
The media CoinDesk, which had previously revealed the close ties between FTX and Alameda Research, has just released a study on this topic. Of the 535 senators in the US Congress, 196 members thus received money from FTX, more than every third senator. Among them are the brand new Speaker of the United States House of Representatives, Kevin McCarthy, and Senate Majority Leader Chuck Schumer.
The embarrassment may be great for these members who received money from the old crypto exchange that collapsed on November 11th. Although the total amount received by members of Congress is not known, CoinDesk recalls that SBF contributed $40 million to the midterm election campaign in November before the giant went bankrupt. Similarly, two former FTX directors have been particularly generous, Ryan Salame gave about $24 million to Democratic and Republican candidates, while Nishad Singh gave $10 million to Democratic candidates. Among the recipients are Democrat Lou Correa ($2,900), Republican Sen. Susan Collins ($17,400) and Republican Sen. Mitt Romney ($31,900).
Not very detailed
But what did the politicians do with this money after FTX’s collapse? Of the 196 members, only 53 members gave explanations CoinDesk. More specifically, 34 members indicated that they “left” the money received to “charities,” while 19 members reportedly contacted the US Department of Justice to donate the money to a “fund” to compensate victims of FTX. Despite this good deed, the money sent to these associations could be reinstated in the bankruptcy proceedings.
“Making a payment or donation to a third party (including a charity) of the amount of any payment received from an FTX contributor does not preclude debtors of FTX from seeking recovery,” FTX had stated in December, reminding him CoinDesk.
According to CoinDeskonly five members of Congress would have actually returned the money received to FTX.
As a reminder, the former second largest crypto exchange platform in the world now has more than a million injured customers. Last week, FTX claimed to have recovered $5 billion (including cash and crypto), adding to the $425 million in cryptocurrency held by the Bahamas Commission.
But will this sum be sufficient to compensate the victims? FTX already owes $3.1 billion to its top 50 creditors, which will be repaid first. According to legal documents, FTX’s debt is between 10 and 13 billion, against assets of 2 to 4 billion.