The Metropolitan Museum of Art, located in New York, has announced that it will give back $550,000 in donations it received from the cryptocurrency exchange FTX before they faced financial difficulties and filed for bankruptcy in November. The museum confirmed this decision in a filing submitted to the United States Bankruptcy Court in Delaware on June 2, which is the same court where this cryptocurrency exchange initiated its bankruptcy proceedings. The museum aims to return the funds to FTX debtors.
The Metropolitan Museum of Art stated that the decision to return the funds resulted from fair and transparent discussions with FTX’s debtors, demonstrating good faith. The museum received the total amount of $550,000 in two distinct payments. The initial installment of $300,000 was received in March 2022, followed by an additional $250,000 two months later, in May.
The donations were arranged through West Realm Shires Services, the company responsible for operating FTX.US. FTX’s leadership has been actively trying to recover the donations it made to politicians and various organizations since December, shortly after filing for bankruptcy in Delaware. According to court documents, FTX distributed a total of $93 million in donations between March 2020 and November 2022.
According to data from Unusual Whales, out of the approximately 180 US politicians who received funds from FTX, only 19 of them have either returned the funds or indicated their intention to do so. Data from Market Watch reveals that the “Protect our Future PAC” was the primary beneficiary of FTX’s donations, receiving approximately $27 million from the cryptocurrency exchange.
FTX Lawsuits Reverberate
Several crypto influencers have become more cautious about accepting lucrative endorsement offers due to the potential consequences if things go wrong for the company involved. This shift in approach follows the collapse of the crypto exchange FTX last year, which led to several celebrities being sued for their alleged role in promoting it.
In March, a class-action lawsuit worth $1 billion was filed, accusing eight influencers of promoting “FTX crypto fraud” without disclosing their compensation.
According to influencers interviewed by Cointelegraph, this situation has served as a wake-up call. Those who endorse crypto companies now recognize that their followers may take legal action against them in the future if the endorsed company turns out to be unfavorable.
For example, crypto vlogger Tiffany Fong, who gained recognition for her interview with former FTX CEO Sam Bankman-Fried after the collapse, currently has no interest in endorsing crypto firms on her social media platforms.
Marketing agencies that facilitate collaborations between influencers and brands have observed concerns from both parties involved in the business.
Nikita Sachdev, the CEO and founder of Luna PR, emphasized that it’s not just influencers who are displaying increased caution regarding endorsement deals, but crypto companies themselves are also adopting a more careful approach.
Sachdev highlighted that the prolonged downturn in the crypto market has compelled crypto companies to adopt stricter budgetary measures, leading to an overall decrease in influencer partnerships. Rasmus Rasmussen, the Chief Marketing Officer of Polygon NFT game Planet IX, expressed to Cointelegraph that it has become increasingly difficult to engage A-list influencers for promoting cryptocurrencies following the FTX collapse.