Loeb partner and co-chair of the firm's Nonprofits & Tax-Exempt Organizations practice Jason Lilien is quoted in a New York Times article, discussing the vulnerability of charities and companies to clawback claims.
According to the article, organizations and individuals that received funding from Sam Bankman-Fried, former CEO and founder of FTX, prior to the cryptocurrency exchange’s decision to file for bankruptcy, are now unsure whether they will be able to utilize their funds.
“Charities are vulnerable to clawbacks when donors go bankrupt,” Jason told the publication. He went on to add, “Companies that receive venture investments from bankrupt companies may be in a somewhat stronger position than charities, but they are also vulnerable to clawback claims.”
Click here to read the full article from The New York Times (subscription required).