The Metropolitan Museum of Art in New York has decided to return a donation of $550,000 that it received from the crypto exchange FTX last year, according to ARTnews. This decision comes after FTX experienced a dramatic fall into bankruptcy in November, and its new CEO, John Ray III, has been working to recover funds to repay creditors.
The agreement to return the donations was disclosed in a court document filed on Friday as part of FTX's ongoing bankruptcy proceedings at the United States Bankruptcy Court in Delaware. The Met expressed its intention to return the funds to the FTX Debtors, and negotiations between the two parties have been conducted in good faith.
The donations were received by the Met in two installments: $300,000 in March 2022 and $250,000 in November 2022. The money was sent by West Realm Shires Services, the entity operating FTX.US. It is worth noting that in 2022, Sam Bankman-Fried's Future Fund distributed $160 million in donations through MacAskill. However, during the same period, Bankman-Fried allegedly utilized FTX funds for personal real estate purchases, political contributions, and to support his Alameda Research hedge fund.
The collapse of FTX and its financial difficulties, which led to the inability to process customer withdrawals, have strained the relationship between the traditional art world and the crypto industry. While the art world had shown interest in embracing NFTs and blockchain technology, the events surrounding FTX have created more skepticism and caution.
The return of the $550,000 donation is seen as a significant step in the recovery process for FTX and its creditors. As FTX navigates its bankruptcy proceedings, the actions taken by the Metropolitan Museum of Art highlight their commitment to transparency and responsible handling of donations.
This development serves as a reminder of the challenges faced by organizations when dealing with the intersection of the crypto industry and traditional institutions, emphasizing the need for thorough due diligence and ongoing monitoring of financial transactions to maintain integrity and mitigate potential risks.
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