Sam “SBF” Bankman-Fried, the founder of the now-defunct crypto exchange FTX, finds himself at the heart of a $100 million scandal involving the misuse of company assets for political donations.
Recently uncovered emails by The Wall Street Journal (WSJ) have revealed that SBF’s family managed over $100 million in political contributions. These funds, reportedly misappropriated from FTX customer accounts, were allegedly used to influence the 2022 election, triggering multiple legal actions.
**Family Involvement**
The emails extensively detail the involvement of SBF’s family, particularly highlighting his father, Joe Bankman’s role in advising on financial strategies for political donations. According to the WSJ, Joe Bankman was directly implicated in the illicit funding activities. Additionally, SBF’s mother, Barbara Fried, and his brother, Gabriel Bankman-Fried, were also implicated. Barbara, a co-founder of the super PAC Mind the Gap, allegedly directed funds to progressive groups and initiatives, while Gabriel focused on pandemic prevention efforts.
**Legal Implications**
David Mason, former chairman of the Federal Election Commission, pointed out that Joe Bankman’s involvement could lead to direct legal liabilities under campaign finance laws. Mason emphasized that the emails contained “strong evidence” of Joe Bankman’s awareness of the “illegal straw-donor scheme.” Despite this, a spokesperson for Joe Bankman claimed he had “no knowledge of any alleged campaign finance violations.”
**Former FTX Executive Jailed**
On May 28, former FTX Digital Markets co-CEO Ryan Salame was sentenced to 7.5 years in prison after pleading guilty to felony charges. United States District Court Judge Lewis Kaplan handed down the sentence after Salame admitted to conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud. Salame’s sentencing is part of a broader series of legal repercussions facing FTX, following the guilty pleas of former executives Caroline Ellison and Nishad Singh, who are awaiting sentencing.
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