Democratic PAC: To Return $3M Donation From FTX

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Democratic Senate Majority Political Action Committee (PAC) seeks to return $3 million in political contributions from former FTX executives because to the ongoing FTX contagion and unfavorable press. $2 million came from Nishad Singh, the former head of engineering at FTX. Additionally, Sam Bankman-Fried (SBF), the former CEO of FTX, donated $1 million for the 2022 election. Over $160 million has been spent by the super PAC overall to promote Democratic candidates for Senate seats.

Tuesday, a PAC spokeswoman stated to CNBC that:

"Senate Majority PAC previously set aside the contribution amounts from Sam Bankman-Fried and Nishad Singh in response to the serious allegations against FTX with the intention of returning the funds as soon as we receive the proper guidance from federal law enforcement officials based on their legal proceedings," the statement reads.

Sam Bankman-Fried has contributed millions of dollars to numerous PACs that back the Democratic Party, including the House Majority PAC, Protect Our Future, and Future Forward USA. SBF-founded cryptocurrency trading company Alameda Research gave Future Forward USA more than $5 million. Then Future Forward USA invested millions of dollars to support Joe Biden's candidacy for president in 2020.

Bankman-Fried reportedly also gave $6 million to the House Majority PAC in April, which raises funds for Democratic candidates for the lower house, according to a Federal Election Commission (FEC) report. The PAC “will send funds in question wherever authorities instruct us,” according to spokeswoman CJ Warnke.

Sam Bankman-Fried contributed over $40 million to the midterm elections, the majority of which went to Democrats. Singh gave federal politicians $8 million during the 2022 midterm elections. The former FTX director of engineering is not currently facing any legal action.

Final Thoughts
Sam Bankman-Fried also decided not to fight extradition and is returning to the United States as soon as Wednesday, according to NBC News. Along with politicians, FTX also gave $2 billion to Binance last year. They can also be required to repay the money.