Coin World reports:
Sam Bankman Fried, founder of the now-defunct cryptocurrency exchange FTX, once hailed as the “poster boy” of cryptocurrency, was embroiled in a multi-billion dollar scandal involving the misuse of company assets for political donations.
Emails discovered by The Wall Street Journal (WSJ) indicate extensive involvement by the family of this convicted executive, which may lead to legal disputes.
SBF and family face more legal troubles
Recently disclosed emails by The Wall Street Journal show that SBF’s family managed over $100 million in political donations. This money is allegedly extracted from FTX customer funds to influence the 2022 elections, raising concerns about potential legal litigation.
These emails detail the involvement of SBF’s father, Joe Bankman, in advising on financial strategies related to political donations, with evidence suggesting his direct participation in illegal activities. SBF’s mother, Barbara Fried, and brother, Gabriel Bankman Fried, are also said to manage the flow of funds for various political ventures.
Barbara happens to be the co-founder of the super political action committee Mind the Gap, claiming to have directed funds towards progressive groups, while Gabriel focuses on pandemic prevention work.
Former Chairman of the Federal Election Commission, David Mason, stated that Joe Bankman’s involvement could lead to legal liabilities under campaign finance laws, citing “strong evidence” that he was aware of the illegal straw donation scheme.
Nevertheless, the spokesperson for SBF’s father, a Stanford University law professor, insists, “He is unaware of any so-called campaign finance violations.”
The role of FTX executives in political donation fraud
The Wall Street Journal’s report also implicates former FTX executives Ryan Salame and Nishad Singh, along with the entire Bankman Fried family, in the political donation scheme.
Both admitted to participating in the illegal straw donation conspiracy. Prosecutors claim Salame transferred funds to Republican candidates to obscure their connection with Bankman Fried, while Singh supported liberal candidates.
As reported earlier, Salame, who served as the co-CEO of FTX Digital Markets, was sentenced to 7.5 years in prison and three years of supervised release. He was ordered to forfeit $6 million and provide over $5 million in restitution.
