A U.S. federal judge has granted the government additional time to negotiate the return of up to $13.25 million in political donations made by former FTX executives Sam Bankman-Fried and Nishad Singh. Judge Lewis Kaplan, presiding over the case, approved the government’s request to extend negotiations with various political action committees (PACs) until January 15, 2025.
The US government is working to reclaim funds that Bankman-Fried and Singh donated to Democrat-aligned PACs and liberal advocacy groups before FTX’s collapse.
US Government Pushes PACs For Return of $13.25M in Donations from FTX’s Executives
In a recent court filing, the US government formally requested more time to negotiate with political action committees (PACs) that received donations linked to Sam Bankman-Fried and Nishad Singh. Judge Lewis Kaplan approved the request, allowing the US until January 15, 2025, to continue its discussions.
The PACs in question, including the Senate Majority PAC, Emily’s List/Women Vote, and the Future Forward PAC, are largely Democrat-aligned organizations. The US government is seeking the return of funds contributed in the names of Bankman-Fried and Singh, which reportedly total $13.25 million.
According to testimony, Singh stated he made some donations at Bankman-Fried’s instruction, even signing blank checks used for political contributions.
Court Filing Details Negotiation Efforts with PACs
The court documents indicate that the government is currently negotiating with several PACs to determine the forfeitability of the donations received. The Future Forward PAC, which reportedly received $1 million in Singh’s name and $5 million from Bankman-Fried, and GMI PAC, which received $2 million, are among those targeted in the recovery efforts. Senate Majority PAC and Women Vote were also recipients, with donations amounting to $2 million and $2.25 million, respectively.
These negotiations follow broader efforts by the US government to address donations tied to FTX executives amid allegations of fraudulent activity by Bankman-Fried and his associates. Several political organizations have reportedly returned funds previously donated by the executives, while others have redirected the money to charitable causes.
As part of the ongoing investigation, Bankman-Fried’s former colleague Nishad Singh recently received a sentence of time served and three years of supervised release. Nishad will avoid prison after providing testimony against Bankman-Fried.
The case has drawn attention to the legal considerations around political contributions from sources facing allegations of financial misconduct.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
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