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Non-profit organizations must return donations from FTX

Many of the organizations that received millions in donations from FTX have already spent the money.

By Mike Hesp
• 2 min read
Non-profit organizations must return donations from FTX

Many of the organizations that received millions in donations from FTX have already spent the money. It may still be recoverable.

reportedly Sam Bankman-Fried donated about $160 million via FTX's charitable fund to 110 non-profits worldwide. The Wall Street Journal reported that FTX is now clawing back the donations as part of the bankruptcy process.

Some organizations reportedly approached the company to return the donations ahead of time. Others are currently weighing their legal options. Some allegedly spent the money already for potential purposes. These include university research funds, scholarships for developing countries, or funds to fight the coronavirus pandemic.

According to reports, it is still up to the court whether the organizations will be forced to pay the money back. If FTX is formally deemed a fraud, that would apply.

Meanwhile, the trustees are also trying to recover Bankman-Fried's political donations of about $80 million. The New York prosecutor claims that client funds were also misused for political donations. These would thus be unlawful and must be repaid.

Last week the U.S. Department of Justice seized Robinhood shares owned by FTX and SBF.

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