>

“Need the money to hire more lawyers” — Sam Bankman-Fried, probably.
FTX is asking the funds be returned by Feb. 28. The move comes after FTX issued a request in December for fund recipients to voluntarily return the payments.

Ha. >

"Who?" - some politician >

"Oh... I already donated it, bruh. " >

With regard to payments that are not returned voluntarily, FTX said its debtors "reserve the right to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced
Any lawyers care to weight in on the above?  Also with the total being about $50 million in over 100 separate donations, I don't see how legal costs wouldn't eat away any amount they did recover through the courts. >

Hi I am a lawyer focusing on chapter 11. It is absolutely true that a bankruptcy court can avoid these donations to politicians as long as it had evidence of the transaction. Bankruptcy courts are incredibly powerful and can avoid transactions made within 2 years of a filing when the company was otherwise insolvent. They’re considered fraudulent conveyances. >

Do you mean void? >

No, he means avoid. It's a legal term of art meaning to make unenforceable. >

I don’t think it works like that. >

We can't even get my Republican congressmam to return or donate the money he got from a Republican fundraiser that's charged with trafficking teenaged girls for sex. >

It's fucking ridiculous isn't it? >

Our fine politicians are going to get right on that! >

That would seem likely to moot any goodwill that those donations were intended to create. >

They’re bankrupt and their CEO's going to jail. That horse is out of the barn. >

The recipients should pass on the donations to charities. >


FTX warned that recipients making a "payment or donation to a third party (including a charity)" in the amount that they had received from FTX would not prevent FTX from seeking the return of the funds.

It's always great when politicians donate extra money from their war chests to charity. Give me moment here...
Ok, done laughing. But politicians still have to return donations made to them upon request. >

They actually made that a law? I've never heard of this requirement. >

It's not a political contributions thing, it's a bankruptcy thing.  The bankruptcy court can claw back payments made while the company is insolvent before actually filing (facts and circumstances dictate exactly how far they look back).  The idea is that if you owe $1,000,000 to your friend and $10,000,000 to the bank, and have $1,000,000 left, you can't pay back your f riend and then file for bankruptcy, the court will claw it back and give your friend ~$100k and the bank ~$900k (ignoring seniority etc. which may implicate details). >

The donations were a gift Todd.