Lawmakers quick to unload FTX founder’s contributions
Alaska Writer’s Workshop California food banks A charity that combats diabetes.
The lawmakers who received large sums of money from Samuel Bankman-Fried once can’t seem to move fast enough to transfer their contributions to the disgraced crypto mogul anywhere but their campaign coffers.
Bankman-Fried was the ex-CEO of cryptocurrency exchange FTX. He was a prolific donor to candidates, from local campaigns to President Joe Biden, as well as super PACs with large influence in campaigns. Bankman-Fried, a champion of “effective altruism”, was arrested in the Bahamas this week. He is now facing charges of financial fraud and could spend decades in prison.
The Associated Press reached out to more than 4 dozen lawmakers who received campaign donations from Bankman-Fried in this election cycle. This included representatives of both parties and chambers, but mainly House Democrats. Many of the people who received Bankman-Fried cash quickly responded, stating that they have already donated the money or are planning to do so. Many also pointed out that Bankman-Fried did not solicit contributions.
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Bankman-Fried’s campaign donations were received by lawmakers at the highest levels of Senate and House Democratic leadership. The contribution was donated to the American Diabetes Association by Rep. Hakeem Jeffreys, D-N.Y. Rep. Pete Aguilar (D-Calif.), who will be the third-ranking House Democrat next Year, donated his Bankman-Fried contributions to local charities last month.
The Senate Majority Whip Dick Durbin, an Illinois Democrat, is the No. A spokeswoman stated that Dick Durbin of Illinois, the Senate Majority Whip, will donate his contribution towards an “appropriate charity”. Senator Patty Murray (D-Wash.), who will be third in the line for the presidency next year will donate her cash towards a local Washington charity.
Senator Tina Smith (D-Minn.) donated Bankman-Fried’s contributions to Planned Parenthood North Central States. D-Calif. Senator Alex Padilla sent his cash to food banks in California. Senator Lisa Murkowski (R-Alaska) donated her contribution at Storyknife Writers Retreat, Homer, Alaska.
Democratic Rep. Ruben Gallego of Arizona, who is strongly hinting he’ll challenge Democrat-turned-independent Kyrsten Sinema for the Senate, gave the $5,800 he received from Bankman-Fried to incoming Democratic Rep. Andrea Salinas of Oregon. Salinas won the Democratic primary against a competitor backed by millions from Bankman-Fried.
“Congress must immediately take action to regulate crypto industry, implement strict oversight rules, and protect consumers from schemes such as this in the future,” stated Rep. Angie Craig (D-Minn.), who also said she will donate her Bankman-Fried contribution towards a bankruptcy fund to compensate FTX clients.
Sens. Cory Booker (D-N.J.), John Boozman (R-Ark.), Bill Cassidy., Susan Collins. R-Maine. John Hoeven. John Hoeven. John Hoeven. Joe Manchin. Sen.-elect Peter Welch. Debbie Stabenow. Senator-elect Peter Welch.
According to FEC records, the main campaigns committees that work to elect congressional Democrats received tens to thousands of dollars from Bankman-Fried. House Majority PAC, a well-funded outside group supporting House Democrats, received a $6 million contribution. Officials from HMP, the Democratic Congressional Campaign Committee, and the Democratic Senatorial Campaign Committee declined to comment on the plans of the groups with Bankman-Fried contributions.
The White House is also silent about the multimillion-dollar boost that his presidential bid received. Karine Jean-Pierre, the press secretary, referred questions to the Democratic National Committee. They declined to comment.
There were also millions that were given to obscure political action committees. The Protect Our Future PAC was funded by Bankman-Fried and spent as much as $2 million on ads to support Lucy McBath. Lucy McBath ran a successful campaign against Carolyn Bordeaux, the incumbent Georgia representative. According to the FEC website, Bankman-Fried wired $27 million to PAC in 2022.
Bordeaux spoke with the Associated Press to say that the problem surrounding Bankman-Fried campaign spending isn’t as straightforward as returning individual donations. Sometimes, the money has already been used to influence elections.
Bordeaux stated that the “larger issue is super PACs.” They cannot refund that. Here’s an example of a billionaire who stole money and diverted it into political contributions. This is a clear example of corruption in our political system.
She said, “This is an excellent opportunity to reopen conversation about campaign financing reform.”
Brett Kappel is a veteran campaign finance lawyer who has worked both for Republicans and Democrats. He said that it would be prudent for members of Congress who have received donations from Bankman Fried, or other FTX officials, to put the money aside, “given the high probability the bankruptcy receiver will seek their return.”
This is because bankruptcy courts often side with the people seeking to recover money they have wrongfully lost. Lawmakers who donated money from company officials could be held responsible for the return of the money received or the risk of stiffening constituents who have lost their investments as a result.
Kappel stated that lawmakers are not liable unless they knew that the contributions were illegal when they were received.
This week, the U.S. government indicted Bankman-Fried, 30, with financial crimes. He was accused of deceiving customers and investors to gain his own wealth while also playing a key role in the collapse of the multibillion-dollar company.
His indictment includes conspiracy to defraud America and violating Federal Election Commission campaign finance laws. U.S. attorney Damian Williams stated that Bankman-Fried had made illegal campaign donations in the millions at a press conference Tuesday.
According to the Securities and Exchange Commission, Bankman-Fried has raised more than $1.8 Billion from investors since May 2019. He promoted FTX as a safe and responsible platform for trading crypto assets. Instead, he diverted customers’ money to a private crypto hedge fund called Alameda Research LLC.
According to the SEC, Bankman-Fried used these c
