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Charities Funded by Sam Bankman-Fried May Be Asked to Return Donations

Loeb partner and co-chair of the firm's Nonprofits & Tax-Exempt Organizations practice Jason Lilien is quoted in a MarketWatch article, discussing clawback claims against philanthropic entities after former FTX CEO and founder Sam Bankman-Fried made dozens of donations to nonprofits.

Jason generally spoke about nonprofits and clawback claims outside the realm of FTX’s bankruptcy filing. “The unfortunate reality is that charities are vulnerable to clawback claims when a funder enters bankruptcy,” Jason told the publication. He went on to add, while there can be some exceptions made in certain circumstances, generally speaking the law does not let nonprofits avoid clawback attempts.

Click here to read the full article from MarketWatch.