Airdrop Army

The U.S. government is in active talks to reel back a hefty $13.25 million in political donations made by ex-FTX honchos. A fresh court filing reveals that authorities want until January 15 to hash out the returns with several influential political action committees (PACs). Judge Lewis Kaplan, who’s steering the criminal case against FTX’s infamous founder Sam Bankman-Fried, signed off on the government’s request.

Extending Negotiations: The Pursuit of Forfeited Funds

These PACs—some of the biggest names backing liberal causes—received millions from Bankman-Fried and FTX’s former engineering chief, Nishad Singh. The government’s filing indicates a full-court press to “discuss with [the PACs] the forfeitability of funds” tied to the FTX scandal. Named in the filing are Senate Majority PAC, Future Forward PAC, Future Forward USA Action, Emily’s List/Women Vote, and GMI PAC. All of these groups typically push Democratic or progressive agendas.

Data from OpenSecrets paints the picture: Bankman-Fried and Singh were moving money with seemingly reckless abandon. Singh testified that he sometimes left checks blank, simply signing off on them for donations at Bankman-Fried’s request. Singh’s courtroom confession helped him dodge prison, landing him with time served and three years of supervised release.

Where the Millions Landed: A Trail of PAC Contributions

The donations paint an eye-popping trail. Future Forward PAC logged $1 million under Singh’s name and $5 million from Bankman-Fried. Meanwhile, GMI PAC bagged $2 million, while the Senate Majority PAC—a heavyweight for Democrats in Congress—pocketed $2 million from Singh and $1 million from Bankman-Fried. Emily’s List, via Women Vote, clocked in $2.25 million from Singh.

In total, the government’s on the hunt for $13.25 million, a figure that could balloon if any donations were routed through aliases. The PACs are now under the spotlight, as Uncle Sam pressures them to cough up every penny linked to FTX.

Some Donations Already Returned, But Feds Dig Deeper

Amid FTX’s collapse, some PACs and politicians returned Bankman-Fried’s donations to avoid the fallout. CBS News noted that a “majority” of groups who got his cash intended to reallocate the funds. But with the Feds turning up the heat, it seems no PAC will escape scrutiny until every dollar’s accounted for.