FTX Founder Sam Bankman-Fried’s Family Involved in $100M Illicit Political Donation Scheme

• Sam Bankman-Fried’s family allegedly misused nearly $100 million of FTX customer funds for illicit political donations.
• Emails revealed by WSJ indicate direct involvement of SBF’s family members in the misappropriation of funds.
• Two former FTX executives were also implicated in the scheme, leading to further legal scrutiny.

Discover the details of the latest allegations against Sam Bankman-Fried and his family’s role in misusing FTX customer funds for political donations.

Sam Bankman-Fried’s Family Accused of Illicit Political Donations

New allegations have emerged implicating the family of Sam Bankman-Fried (SBF), founder of the failed cryptocurrency exchange FTX, in a complex scheme involving $100 million in illicit political donations. According to emails unveiled by The Wall Street Journal (WSJ), SBF’s family members were heavily involved in directing these funds toward various political campaigns and causes, using resources allegedly misappropriated from FTX customers.

Involvement of SBF’s Parents and Brother

The emails suggest that SBF’s parents, Joe Bankman and Barbara Fried, and his brother Gabriel Bankman-Fried orchestrated the disbursement of these funds. Joe Bankman, a Stanford University law professor, is accused of providing strategic financial advice to facilitate the scheme. Barbara Fried, co-founder of the political action committee (PAC) Mind the Gap, allegedly channeled funds towards progressive initiatives, while Gabriel Bankman-Fried focused on pandemic prevention efforts. These actions were part of a coordinated effort to influence political outcomes without disclosing the illicit origins of the donations.

Evidence from Disclosed Emails

Emails obtained by WSJ reveal a detailed picture of the scheme, showing how Joe Bankman actively participated in the planning and execution of the illicit donations. The evidence suggests that he was aware of the illegal straw-donor setup and advised his family on how to proceed. These revelations place Joe Bankman in significant legal jeopardy, potentially violating campaign finance laws.

Role of Former FTX Executives

Further complicating the case, two former FTX executives, Ryan Salame and Nishad Singh, are also implicated in the scheme. Salame is accused of redirecting funds to Republican candidates, thereby masking the contributions’ association with SBF. Nishad Singh, on the other hand, supported liberal candidates. Both have admitted their roles in the illegal donor activities, adding weight to the prosecution’s case against the Bankman-Fried family.

Legal Consequences and Denials

The investigation and subsequent legal proceedings have highlighted the severe implications for those involved. David Mason, former chairman of the Federal Election Commission, describes the emails as “strong evidence” of Joe Bankman’s complicity. Despite this, a spokesperson for Joe Bankman has categorically denied his involvement, claiming he had no knowledge of any campaign finance violations. This defense stands in stark contrast to the substantial evidence presented.

Conclusion

The alleged involvement of Sam Bankman-Fried’s family in the illicit political donation scheme has brought significant legal scrutiny upon them. With emails providing substantial evidence of their roles, the implications are severe, potentially leading to considerable legal repercussions. As the investigation unfolds, it will be crucial to track how these developments impact the broader crypto landscape and regulatory measures moving forward.