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.
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.
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.
