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1 in 3 Congress Members Received Campaign Funds from Fraud-Ridden Crypto Exchange FTX

The new session of the US Congress began with 196 lawmakers who received campaign contributions from Sam Bankman-Fried, CEO of crypto exchange FTX, and other executives.

Cracked FTX logo
Cracked FTX logo

Many of these members are now trying to get rid of these funds.

CoinDesk has identified 196 members of the new Congress who received cash from Sam Bankman-Fried or other senior executives at FTX. This crypto exchange filed for bankruptcy in November after being revealed to have unusually close ties to affiliated hedge fund Alameda Research.

These members include high-ranking politicians such as Speaker of the House Kevin McCarthy and Senate Majority Leader Chuck Schumer.

Senate Majority Leader Chuck Schumer
Senate Majority Leader Chuck Schumer

After it became clear that the funds came from a financial swindle, many politicians decided to donate the money to charities to remove the shame of the contributions. Some have also contacted the US Department of Justice about setting aside money for victims of the scam.

Kevin McCarthy, Speaker of the United States House of Representatives
Kevin McCarthy, Speaker of the United States House of Representatives

However, even if the politicians donate the money to charities, they may still be subject to clawbacks in FTX's bankruptcy case. The company has advised recipients of donations from FTX executives to return the money soon, as it was never theirs to give if it was stolen. Some campaigns are in touch with the bankruptcy team or government authorities to determine how to return the money.

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