New data indicates that Sam Bankman-Fried (SBF) was not acting alone, so the story of FTX, the collapsing bitcoin exchange, takes an unexpected turn.
Emails uncovered by the Wall Street Journal claim a $100 million political donation system run by SBF and his whole family, which begs major concerns regarding campaign finance abuses and the usage of consumer money.
A Family Affair: From Law Professor To Alleged Straw-Donor Architect
Essential to the charges is Joe Bankman, a Stanford law professor father of SBF. Emails apparently show his participation in planning the claimed scheme, which authorities say amounts to an unlawful straw-donor operation.
Often used to circumvent contribution restrictions or hide the source of money, straw-donor programmes entail utilising other people’s money to make political contributions.
Joe Bankman says he had “no awareness of any purported campaign financing crimes,” despite his legal experience. The emails, however, present a different image and may expose him to major legal responsibility.
Another involved is Barbara Fried, SBF’s mother and co-founder of Mind the Gap, the political action group (PAC).
The emails imply she funnelled money towards progressive groups, maybe using FTX client money as a slush fund for her political leanings.
The brother of SBF, Gabriel Bankman-Fried, supposedly was not exempt from the temptation too. Once more leveraging FTX money as his personal piggy bank, he has been accused of directing donations towards work at pandemic prevention.
According to former Federal Election Commission chairman David Mason, this concerted family effort sought to impact the 2022 election cycle.
“The evidence offered in these emails is persuasive,” Mason said, stressing “strong proof” of Joe Bankman’s awareness and scheme participation.
A House Of Cards Crumbles: Former FTX Execs Face The Music
Not just the Bankman-Fried family is dealing with the music. Already caught in the collapse of the exchange, former FTX executives are now linked to the contribution programme.
Following a guilty plea to charges involving campaign funding fraud, Ryan Salame, co-CEO of FTX Digital Markets, was sentenced in May to 7.5 years.
Some found this sentence length odd as prosecutors only asked for seven years. The ruling of the judge can indicate a tougher attitude against the people engaged in the financial network of FTX.
Other former FTX officials, Caroline Ellison and Nishad Singh, have also confessed and await sentence. The issue still stands: will SBF’s family suffer comparable repercussions as court procedures go on?
A Legacy Tarnished: From Crypto Visionary To Alleged Fraudster
The FTX controversy keeps growing as the political donation programme adds even another level of intricacy and claimed illegal activity. Although SBF receives a 25-year term for his involvement in the fall-through of the deal, his family may suffer legal consequences today.
This disclosure casts doubt on SBF’s reputation as a crypto visionary and presents a picture of a family supposedly ready to shape the political scene in order to benefit themselves.
Featured image from Getty Images, chart from TradingView