- Federal officials accuse SBF of committing unlawful political contributions totaling tens of millions of dollars.
- Bankman-Fried’s motive behind the fat donations was to sway legislation that would have an impact on the crypto market.
- The SEC accused Bankman-Fried of diverting customer money from FTX to Alameda Research.
Federal officials accuse Sam Bankman-Fried, the founder of FTX, of committing unlawful political contributions totaling tens of millions of dollars to both Republican and Democratic leaders.
According to the prosecution, Bankman-Fried’s motive behind the fat donations was to sway away from legislation and regulations that would have an impact on the crypto market.
Reportedly, the Securities and Exchange Commission (SEC) accused Bankman-Fried of diverting customer money held by the bankrupt crypto exchange FTX, to his second crypto hedge fund, Alameda Research, in a civil lawsuit brought to the Manhattan federal court.
Further clarifying the matter, the SEC stated:
He then used those funds to make large political donations,” to make investments and buy lavish real estate. Bankman-Fried used Alameda as his personal piggy bank for those purposes.
Additionally, Bankman-Fried and others are also charged in a separate but related federal criminal indictment with breaking many federal campaign finance regulations, including giving contributions totaling at least $25,000 to campaigns and political action organizations “in the names of other persons.”
According to the indictment, prosecutors said that Bankman-Fried and others conspired to give “corporate contributions” to New York political candidates and committees “that were reported in the name of another person.”
Damian Williams, the U.S. Attorney for the Southern District of New York, stated at a press conference:
All this dirty money was used in service of Bankman-Fried’s desire to buy bipartisan influence and impact the direction of public policy.
According to the watchdog Citizens for Responsibility and Ethics in Washington, Bankman-Fried acknowledged he contributed ‘black money’ to organizations with ties to the Republican Party during the 2022 primary season. The SEC filings would not have included information on those gifts.
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