By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

LOCAL charities are shocked to learn that the collapsed cryptocurrency exchange FTX has announced they are seeking the return of donations made by its former management.

The FTX Trading Ltd, the US arm of FTX, is urging all recipients of contributions to voluntarily return funds for the benefit of customers. However, it is unclear whether donations received by local entities are also required to be returned.

“To the extent such payments are not returned voluntarily, the FTX debtors intend to commence actions before the Bankruptcy Court to require the return of such payments, with interest accruing from the date any action is commenced,” FTX said in a statement last week.

“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from an FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee.”

 The failed crypto exchange had pushed to give back to the community by donating to a number of local social outreach programmes in support of the company’s corporate philanthropy efforts.

 At the beginning of this year, The Tribune reported that FTX Digital Markets, which is headquartered in The Bahamas, donated more than half a million dollars to local charities.

 The sizeable donations included: The Bahamas Cancer Society, $50,000; Hands for Hunger received $250,000; Links Safe House with $100,000; the Nassau chapter of Links Incorporated had received $20,000; the Occupy Mentorship programme received $25,000, Bishop Lawrence Rolle was allocated $50,000 and the Salvation Army got $50,000.

 There were many more donations made by this company in The Bahamas.

 In an interview with this newspaper yesterday Bishop Rolle said he does not want to address the matter too early, however he noted that returning the money would be a “disgrace”.

 Bishop Rolle, of International Deliverance Praying Ministry, acknowledged that his donation of $50,000 was spent doing charity work.

 He said: “This charity is about $10,000 a week. This isn’t nothing to play with.

 “I am not responsible for somebody calling me and donating something. I am just a poor man working in the community.”

 While noting that he has not been contacted to return funding, he said: “If something come together, then all the poor people will have to sing and dance and come together and return it (the donation)”.

 Grand Bahama Down Syndrome Society shared similar sentiments, as the organisation had allocated the funds.

 Wende Hanna, president of the Grand Bahama Down Syndrome Society, said the donation in the amount of $5,000 was used to host a summer camp.

 She noted that if legally required to return contributions made by the failed crypto exchange, Grand Bahama Down Syndrome Society they could not do it.

“If we were legally required to under penalty, I guess you would have to find a way to do it. But I mean, we don’t have that. You know, we don’t have those funds at this point,” said Ms Hanna.

 The UK Guardian reported that in criminal charges filed in the state of New York, the Department of Justice has alleged that the donations were the result of criminal money laundering, since the money was effectively taken from customer accounts.

 FTX and its associated companies filed for Chapter 11 bankruptcy in the US last month. The company’s former CEO Sam Bankman-Fried was extradited from The Bahamas to the US last week to face fraud charges.