On Monday, February 6th, the new FTX management demanded refunds from the beneficiaries of Sam-Bankman Fried’s charity cause. The company called for politicians to remit the huge tons of cash obtained from the former FTX CEO before the company went bust.
Sam-Bankman Fried was widely known for his charitable activities and bail-out of crumbling crypto organizations. Before FTX’s downfall, SBF allegedly donated over $5 million to support Joe Biden’s presidential campaign in 2020. Further, Ryan Salame, FTX’s co-CEO, has also been linked with extravagant donations to individuals and organizations.
FTX bubbled for years and quickly became one of the leading cryptocurrency exchanges globally. However, the company’s success was cut short when Sam-Bankman Fried was exposed. With his illegal dealings with Alameda Research coming to light, the company’s valuation crumbled. Eventually, SBF lost his beloved company, and John Ray took over as the CEO.
Charity Refunds – A Dream or a Reality?
With the new management poised to turn things around quickly, FTX has now made a strange demand. The company confirmed that it is reaching out to beneficiaries confidentially, hoping to regain some of its lost cash. Politicians who received donations from SBF have been urged to return all they received willingly. The FTX management also added that legal actions would be taken against defaulters if they fail to respond favorably on or before the 28th of February.
As expected, the new demands have been met with some resistance. Earlier, some politicians revealed they had distributed the funds from the company’s ex-CEO to good causes. However, the FTX management is not buying any of the excuses thrown at them. Currently, the company needs as much cash and resources as possible.
While the revival of the exchange seems to be a lost cause to some, John Ray and his co-leaders believe a lot can still be done. Notably, John Ray has admitted that the current management has gone through hell since taking over the company in November.
According to the American attorney, the company had to “scramble” for every bit of information last year. Sam-Bankman Fried and his associates failed to keep records of the company’s income, bank accounts, and insurance. To add to the heat, multiple hackers attempted to steal funds during the turmoil.
With Ray in the driving seat now, FTX investors may have the tiniest beam of hope to hold on to. Admittedly, much of the financial damage on investors can never be undone. But John Ray may just be able to raise the company from beneath the earth to ground level.