The founder of the non-existent crypto exchange FTX, Sam “SBF” Bankman-Fried, has been embroiled in a financial scandal involving the misuse of company assets exceeding $100 million for political donations.
Recent revelations by The Wall Street Journal disclosed emails implicating Bankman-Fried’s family in diverting funds from FTX client accounts for political influence during the 2022 elections, prompting legal scrutiny.
The emails reveal that SBF’s father, Joe Bankman, provided advice on financial strategies for these illicit political donations. It is alleged that Sam Bankman-Fried’s mother, Barbara Fried, and his brother, Gabriel Bankman-Fried, directed funds to various political groups, with Barbara supporting progressive causes and Gabriel contributing to pandemic prevention efforts.
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David Mason, former chairman of the Federal Election Commission, cited “serious evidence” from the emails showing that Joe Bankman was aware of potential violations in campaign financing. Despite these findings, a spokesperson for Joe Bankman denies any knowledge of such violations.
Former FTX CEO Ryan Salame was sentenced to 7.5 years in prison for charges including running an unlicensed money transmission business and campaign finance fraud. Salame’s case adds to FTX’s legal troubles following guilty pleas from other former executives Caroline Ellison and Nishad Singh.
