Dec 20 (Reuters) – Non-profit investigative information outlet ProPublica will return $1.6 million it obtained from the household basis of FTX founder Sam Bankman-Fried, based on a workers memo seen by Reuters on Tuesday.
The funds will likely be moved to a separate account till a chapter choose or different authorized authority decides the place the cash ought to be returned, the memo confirmed.
“It doesn’t appear applicable to maintain these funds,” mentioned executives at ProPublica within the memo, the content material of which have been first reported by Axios.
ProPublica additionally mentioned it had terminated its relationship with the muse, referred to as ‘Constructing a Stronger Future’.
Final month, FTX filed for U.S. chapter safety and Bankman-Fried resigned as chief government, after rival cryptocurrency change Binance walked away from a proposed acquisition.
Bankman-Fried faces fraud expenses over the corporate’s collapse in the US. Whereas he has acknowledged risk-management failures at FTX, he believes he has no prison legal responsibility.
In the meantime, a number of crypto corporations are bracing for a success from the FTX collapse as they’ve publicity in hundreds of thousands to the beleaguered change.
Reporting by Manya Saini in Bengaluru; Modifying by Shinjini Ganguli
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