The saga of failed cryptocurrency exchange FTX takes a shocking turn as new evidence suggests founder Sam Bankman-Fried (SBF) was not acting alone.
Emails obtained by The Wall Street Journal allege that a $100 Million Political Donation Plan orchestrated by SBF and his entire family, raising serious questions about campaign finance violations and the misappropriation of client funds.
A family affair: from law professor to alleged donor architect
At the heart of the charges is Joe Bankman, SBF’s father and a Stanford law professor. Emails allegedly detail his involvement in crafting the alleged scheme, which prosecutors say amounts to an illegal fundraising operation.
Voluntary Donation Programs involve using other people’s money to make political donations, often to circumvent contribution limits or disguise the source of the funds.
Despite his legal experience, Joe Bankman maintains that he had “no knowledge of any alleged campaign finance violations.” However, the emails paint a different picture, potentially exposing him to significant legal liabilities.
Barbara Fried, SBF’s mother and co-founder of the political action committee (PAC) Mind the Gap, is also involved.
The emails suggest she directed funds to progressive causes, potentially using FTX clients’ money as a slush fund for his political beliefs.
SBF’s brother Gabriel Bankman-Fried was also allegedly not immune to the temptation. He is accused of funneling donations to pandemic prevention efforts, again using FTX funds as a personal piggy bank.
This coordinated family effort, according to David Mason, former chairman of the Federal Election Commission, was aimed at influencing the 2022 election cycle.
“The evidence presented in these emails is compelling,” Mason said, noting “strong evidence” of Joe Bankman’s knowledge and participation in the scheme.
House of Cards Collapses: Former FTX Executives Face Justice
THE Bankman-Fried family is not alone in having to deal with this situation. Former FTX executives, already embroiled in the stock market crash, are now involved in the donation system.
Ryan Salame, co-CEO of FTX Digital Markets, was sentenced in May to 7.5 years in prison after pleading guilty to charges including campaign finance fraud.
The sentence surprised some, as prosecutors had only requested a seven-year sentence. The judge’s decision could signal a tougher stance toward those involved in FTX’s financial network.
Caroline Ellison and Nishad SinghOther former FTX executives have also pleaded guilty and are awaiting sentencing. As the court proceedings continue, the question remains: will SBF’s family face similar consequences?
A Tarnished Legacy: From Crypto Visionary to Alleged Fraudster
The FTX scandal continues to unfold, with the political donation scheme adding another layer of complexity and alleged criminality. As SBF serves a 25-year prison sentence for his role in the stock market crash, his family now faces potential legal repercussions.
The revelation shatters SBF’s image as a crypto visionary and paints a picture of a family allegedly willing to manipulate the political landscape for personal gain.
Featured image from Getty Images, chart from TradingView
