- The New York-based has decided to return the $550 donation after a request from the debtors.
When FTX was on a tear, it made a number of donations to politicians and other institutes. Metropolitan Museum of Art was one of its humble recipients that received a donation of $550,000.
But, since its collapse in November last year, the FTX management is trying to salvage all that amount back. And in a bid to do so, they have reached the institution to retrieve the donation sum. The New York-based museum has confirmed that it will give the donation back to the debtors. Notably, it will be done in the United States Bankruptcy Court in Delaware where the insolvency was filed by FTX.
The MET said that they agreed to pay back with good faith while keeping negotiations transparent with FTX’s debtors. The massive sum was paid in two installments. The first one was done in the month of March 2022 and the second was done in May with the amount of $300,000 and $250,000 respectively.
Back then, the transactions were facilitated by West Realm Shires Services, the same firm that operated FTX’s payment mechanism. Reportedly, FTX’s management has been trying to retrieve its donation right after one of its bankruptcy filings. They have been reaching politicians and other organizations to get their money back.
As per the documents presented in the court, FTX shelled out a whopping $93 million between March 2020 and November 2022. According to Unusual Whales, FTX has obtained a minuscule amount of what they have doled out as donations. Out of 180 recipients, only 19 have acquiesced to give back the funds.
Based on the data released by Market Watch, “Protect Our Future PAC” was the biggest beneficiary which received a sum of $27 million.
Conclusion
Lately, a lot of exchanges have found ways to revamp their operations post-bankruptcy. Most of them had to work on their asset management to be able to recoup from the setback. FTX also seems to be following suit. The firm is trying to retrieve a massive amount that it doled out as donations. And while many are hopeful about the situation, it would be interesting to see if it happens or not.
