The FTX CEO warned all the politicians that it will take legal action if they will not return the donated funds to the exchange.
FTX was a popular second-ranked Crypto exchange but under the leadership of Sam Bankman-Fried (SBF), the exchange collapsed badly in Nov 2022. Allegedly, SBF misused the FTX customer’s funds. As per allegations, SBF purchased a private jet, donated funds in billions to the democratic politicians & funded his Crypto hedge firm Alameda Research. To this date, no fraud charges have been proved against SBF and he is set to go on trial in October 2023.
On 5 Feb 2023, John John Jay Ray III, a newly appointed CEO for the bankrupt Crypto exchange FTX who is an expert in restructuring collapsed businesses, announced via a press release that the FTX exchange will initiate legal action against all the politicians, who received donations on behalf of former FTX CEO SBF.
The press release noted that FTX will wait only for a small time to get funds back from the politicians and after a particular time frame, it will take legal action because that was FTX customer’s fund which was unethically transferred to them on behalf of the FTX former officials.
Through the announcement, FTX also warned all the recipients who donated FTX-linked funds to third parties, such as charities, that the company will still seek to recover the money.
FUD token & FTX creditors
Recently the Debt Dao project team launched a new token “FUD” to help the FTX creditors. Debt DAO will introduce a new supply of FUD tokens in the circulation on behalf of the FTX debt amount and also Debt DAO will buy back FUD tokens in 1:1 against every FUD token sold by the FUD holders.
Huobi Global crypto exchange launched this token and this token is only available on the Tron blockchain network but a few bad actors launched the same token on the Ethereum network, to steal money from innocent crypto investors.
Justin Sun, the advisor at Huobi Global & anonymous investor in the Huobi exchange, said that FUD will help to boost the confidence among the crypto investors and also help to grow the Crypto sector in a positive direction.