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The second-largest donor to the Democratic Party is suspected of providing tens of millions of dollars in illicit political contributions.
Sam Bankman-Fried, the creator of FTX, was charged on Tuesday by prosecutors with many financial offenses connected to an alleged plot to defraud FTX shareholders, according to The Associated Press.
Bankman-Fried, who was the Democrats’ second-largest contributor in the 2022 election cycle after billionaire mega-donor George Soros, gave little under $1 million to candidates and $38.8 million to “outside groups,” according to Open Secrets.
The total amount spent on the midterm elections by Bankman-Fried and two of his FTX colleagues, co-CEO Ryan Salame and head of engineering Nishad Sing, was staggering: $70.1 million.
Only $235,000 of those donations, according to Open Secrets, went to Republican politicians.
Before being detained on Monday in the Bahamas, Bankman-Fried was already embroiled in controversy due to the abrupt decline of his business and income.
Bloomberg claims that in a matter of days, Bankman-assets Fried’s went from $16 billion to almost nothing.
According to Reuters, the company collapsed last month when it was discovered that “at least $1 billion of customer funds” had disappeared.
According to U.S. authorities, Bankman-Fried orchestrated a scheme to defraud FTX investors by using their money to pay for expenditures, obligations, and “risky trades,” according to the AP.
Some of this cash was utilized to make expensive real estate acquisitions and significant political contributions, the majority of which appeared to go to the Democratic Party.
At a news conference on Tuesday, U.S. Attorney Damian Williams referred to Bankman-alleged Fried’s crime as “one of the biggest frauds in American history.”
John Ray III, the new CEO of FTX, asserted during a congressional hearing on Tuesday that monies belonging to customers were handled improperly under the former management of the business.
Ray claimed that there were “very few rules” and minimal control over how the funds were handled.
According to the AP, Ray stated that “This is not something that happened overnight or in a context of a week,”. “This is just plain, old-fashioned embezzlement, taking money from others and using it for your own purposes.”
Gary Gensler, the chair of the Securities and Exchange Commission, filed a complaint outlining the full scope of Bankman-alleged Fried’s wrongdoings.
“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,” according to Gensler.
“He then used [his crypto hedge fund Alameda Research] as his personal piggy bank to buy luxury condominiums, support political campaigns, and make private investments, among other uses.”
More on this story via The Western Journal