The pro-Democratic Senate Majority PAC will return the funds "once <they> receive proper direction from federal law enforcement officials based on their legal proceedings."
The pro-Democratic Senate Majority Political Action Committee (PAC) has decided to return $3 million worth of donations made by FTX executives.
According to the news report shared by CNBC on December 20th, the super PAC received $2 million worth of donations from FTX’s former head of engineering Nishad Singh and $1 million from former FTX Chief Executive Officer Sam Bankman-Fried. The funds were received during the 2022 election cycle.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
What is Uniswap? (UNI Token Explained With Animation)
In the statement regarding the matter, a PAC spokesperson stated:
Following the serious allegations against FTX, Senate Majority PAC previously set aside the contribution amounts from Sam Bankman-Fried and Nishad Singh with the intention of returning the funds once we receive proper direction from federal law enforcement officials based on their legal proceedings.
CNBC claims that overall, the Senate Majority PAC spent around $160 million during the 2022 United States Senate races, with the majority of money being spent on Democrat-related candidate advertisements.
Earlier this month, the Democratic Senatorial Campaign Committee (DSCC) and the Democratic Congressional Campaign Committee (DCCC) revealed that it is also planning to return donations associated with Sam Bankman-Fried and other FTX executives.
It is worth noting that on December 19th, FTX shared a press release revealing that it will seek to obtain any donations made by Sam Bankman-Fried or other officials. In the press release, the now-bankrupt crypto exchange noted:
The FTX Debtors are working with these recipients to secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors.
Overall, it is believed that Bankman-Fried has donated around $46.5 million to various political campaigns. It is reported that a former CEO donated a similar amount to both Democrats and Republicans.
The mastermind behind FTX was arrested on December 12th and has been held in the Fox Hill prison in Nassau, Bahamas, ever since. However, on December 20th, the news broke that Bankman-Fried signed documents agreeing to be extradited to the United States, where he faces multiple charges.
