The Met’s decision marks a significant move in the crypto-philanthropy sphere.
The prestigious New York-based Metropolitan Museum of Art, also known as the Met, has decided to refund the $550,000 it received from the cryptocurrency exchange FTX before its downfall in November.
On June 2nd, the Metropolitan Museum of Art announced in a document submitted to the same jurisdiction where FTX began its bankruptcy proceedings, the United States Bankruptcy Court in Delaware.
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The donated $550,000 arrived at the Met in two separate transactions. The first, worth $300,000, was given in March 2022, followed by another $250,000 in May of the same year. According to the documents, West Realm Shires Services, the firm responsible for operating FTX.US, facilitated these donations.
The Met decision followed discussions with bankrupt crypto exchange FTX’s debtors.
The Met wishes to return the Donations to the FTX Debtors, and the FTX Debtors and the Met have engaged in good faith, arm’s length negotiations concerning the return of the Donations.
Following the collapse of FTX in November, the crypto exchange’s management initiated efforts to recover its donations. These contributions were extended to various politicians and organizations around a month after the company filed for bankruptcy in Delaware.
As per court documents, between March 2020 and November 2022, FTX donated a whopping $93 million. However, out of around 180 US politicians who received donations from FTX, only 19 have either returned the funds or indicated an intent to do so.
The Metropolitan Museum of Art’s decision to return the donations it received from the collapsed crypto exchange FTX sets a precedent in the arena of cryptocurrency and philanthropy. The incident illustrates the increasing intertwining of cryptocurrency with traditional institutions and the complexities that may arise in cases of financial instability.