NASSAU, BAHAMAS — FTX Trading Ltd and its affiliated debtors announced last week that they will seek the return of any contributions made by the failed crypto exchange.
The company has reportedly been approached by a number of recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried, or other officers or principals of the FTX Debtors.
“These recipients have requested directions for the return of such funds to the FTX Debtors. 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,” the company said.
The company added: “To the extent such payments are not returned voluntarily, the FTX Debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced.
“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from an FTX Contributor does not prevent the FTX Debtors from seeking recovery from the recipient or any subsequent transferee.”
Meanwhile, FTX founder Sam Bankman-Fried is set to be arraigned next week to enter a plea to the eight fraud and conspiracy charges against him.
The arraignment is set for January 3, according to court documents.
Bankman-Fried is facing charges stemming from the abrupt collapse of the crypto exchange last month. He was extradited from The Bahamas to the United States last week and is currently on a $250 million bond. Prosecutors allege that Bankman-Fried orchestrated a years-long fraud and hid the flow of millions of dollars between FTX and Alameda Research, his cryptocurrency hedge fund.
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