- DNS, DSCC, and DCCC decided to repay almost $1 million paid by SBF as the political fund to the FTX investors.
- All the contributions of SBF since 2020 would be paid back by the three Democrats.
- The decision was subsequent to the recent charge on SBF for orchestrating a scheme for defrauding equity investors in FTX.
Subsequent to the arrest of Sam Bankman-Fried, the former CEO of the recently collapsed crypto exchange FTX, the three top US Democrats, namely, the Democratic National Committee (DNC), the Democratic Senatorial Campaign Committee (DSCC), and the Democratic Congressional Campaign Committee (DCCC) decided to return over $1 million political donations of SBF to the investors who have been victimized by the FTX fall.
Confirming the decision to reinstate the fund to support the affected FTX investors, one of the DNC spokesperson told:
“Given the allegations around potential campaign finance violations by Bankman-Fried, we are setting aside funds in order to return the $815,000 in contributions since 2020. We will return as soon as we receive proper direction in the legal proceedings”.
Significantly, the other two committees, DSCC and DCCC, have also promised to pay back the $103,00 and $250,00 respectively, as per the reports.
Recently, on December 13, the US Securities and Exchange Commission (SEC) filed charges against SBF for concealing the illegal use of FTX customers’ funds while raising more than $1.8 billion fund from investors to trade with Alameda Research.
The SEC Chair Gary Gensler, while addressing the crime committed by SBF, told that the latter had been deceiving the FTX traders:
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto”.
Including the recent charge of “orchestrating a scheme to defraud equity investors in FTX”, SBF has been incriminated with eight financial crimes.
Earlier in November 2022, SBF had admitted that he had been a “significant donor” to both the political spectrums. In addition, he told that he could spend up to $1 billion to influence the 2024 US Presidential Election campaigns.