Leading up to Sam Bankman-Fried’s spectacular implosion – in which his firm FTX evaporated billions in wealth after the now-bankrupt cryptocurrency exchange allegedly commingled client assets with his trading firm into a liquidity crunch – he became the sixth-largest donor in this year’s midterm selection cycle, giving some $40 million to mostly Democratic candidates and causes.
According to Forbes , Bankman-Fried was second only to George Soros among billionaire contributor to Democratic groups during the 2022 midterm election routine.
FTX apparently loaned Alameda Research – a trading firm launched by Bankman-Fried – roughly $10 billion in client assets , which has landed your pet under federal investigation by the SEC, CTFC, as well as the Justice Department – the latter of which currently had been working on a months-long investigation, according to the Wall Street Journal . The CTFC, meanwhile, can be tasked with regulating particular elements of the crypto marketplaces – including digital resources that are as commodities, plus crypto exchanges and clearinghouses.
In late September, Bankman-Fried admitted that his political contributions were mostly to Democrats, and Republican recipients had been ‘ targeted’.
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However it goes much deeper than that will
Bankman-Fried ‘ heavily courted’ the CFTC, “ and financed several key lawmakers charged with overseeing the company, pouring cash into their strategy coffers, ” as the Daily Caller records.
The CFTC is charged with regulating certain aspects of the crypto marketplace , including digital assets that are commodities as well as crypto exchanges and clearinghouses. The agency is overseen by the Senate and House Agriculture Committees, with all the former tasked with approving CFTC commissioners nominated with the president.
The former FTX CEO personally donated towards the Senate committee’s chairwoman, Democratic Michigan Sen. Debbie Stabenow, contributing over $20, 000 to the Stabenow Triumph Fund and $5, eight hundred to her strategy for Senate. Bankman-Fried donated roughly $6, 000 towards the committee’s ranking member, Republican Arkansas Sen. John Boozman, as well, and $5, 800 to the ranking member of the Subcommittee on Commodities, Risk Management and Trade, Republican Montana Sen. John Hoeven. -Daily Unknown caller
Others have connected dots and concluded that FTX may have been a money laundering operation .
What’s more, a PAC founded simply by FTX executive Ryan Salme , American Dream Government Action, spent over $1 million on Boozman during the 2022 election period , as well as more than $1,000,000 on House Agriculture Committee member and Republican Minnesota Rep. Brad Finstad.
Bankman-Fried also donated $27 million to the Protect Our Upcoming PAC, which primarily functions elect Democrats. It invested over $1 million towards Representative. Shontel Brown (D-OH), a part of the House Agriculture Committee.
Another donation associated with members of the House Ag committee includes $200, 000 to the Democratic Congressional Campaign Committee (DCCC), headed by Chair Sean Patrick Maloney, and nearly $6, 000 to Maloney himsself. He furthermore gave $20, 000 to the campaign and victory finance of Sen. Kirsten Gillibrand (D-NY), whose father worked for the NXIVM sex cult in the early 2000s, in which he made $25, 000 per month.
In addition to his campaign efforts to the lawmakers tasked along with CFTC oversight, Bankman-Fried sought closer relationships with the agency itself.
Bankman-Fried personally lobbied with regard to legislation in the Senate Farming Committee that would grant the CFTC greater regulatory oversight over the crypto industry, according to Coindesk, and spent hundreds of thousands associated with dollars lobbying the CFTC, SEC and members of Congress on the legislation.
The bill, known as the Digital Commodities Consumer Protection Operate, which would grant the CFTC “ legislation to oversee the spot digital commodity market, ” had been introduced by Stabenow, Boozman, Booker and Republican North Dakota Sen. John Thune, three of whom are beneficiaries of Bankman-Fried’s donations.
Because of its lobbying team, FTX hired former Conservative Rep. Mike Conaway, longtime chair of the House Agriculture Panel, and committee staffer Scott Graves to lobby congress on crypto-related issues. -Daily Caller
As a thought experiment, imagine what Bankman-Fried’s financial ‘ goodwill’ would have bought the firm if FTX hadn’t divided by zero and imploded.