[The Guardian] FTX seeks to claw back donations to politicians and charities

By Guy Raveh @ 2022-12-20T19:05 (+15)

This is a linkpost to https://www.theguardian.com/business/2022/dec/20/ftx-seeks-to-claw-back-donations-to-politicians-and-charities

Some excerpts from the article, without any interpretation because I'm absolutely unqualified for that:

FTX... has started trying to claw back payments made by its former management to politicians, celebrities and charities, as it continues to progress through bankruptcy proceedings in the US.

FTX “intends to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced”, the company said, sharing an email address – FTXrepay@ftx.us – that recipients could use to voluntarily return money.

“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee,” FTX added in a statement.

Under US law, payments or transfers made within 90 days of bankruptcy are presumed to be preferential if they result in a creditor getting more than it would have been entitled to at the end of the bankruptcy process, and a “clawback” can attempt to recover the difference in the payments.