With Sam Bankman-Fried busted and in a Bahamas hoosegow, we now learn the shady truth about just what the accused fraudster was up to.
According to charges filed, as reported by CNBC, he took customer money, from customer accounts, and donated it to Democrats.
Federal authorities on Tuesday charged FTX co-founder Sam Bankman-Fried with using what they said was tens of millions of dollars of misappropriated customer funds to make illegal political donations to both Democratic and Republican candidates.
Prosecutors said one of the reasons he made those contributions was to influence the direction of policies and laws affecting the cryptocurrency industry.
Bankman-Fried diverted customer assets held by FTX, a major cryptocurrency exchange, to his separate crypto hedge fund, Alameda Research, the Securities and Exchange Commission charged in a civil complaint filed in Manhattan federal court.
Oh, sure, some RINO Republicans got money, too, but the bulk of what he misappropriated, reportedly with his onetime “girlfriend” Caroline Ellison, was customer cash that became campaign cash to Democrats, making him the second-biggest donor to the Democrat party in 2020, bested only by hedge fund manager George Soros.
Now that he’s bankrupt and under arrest, Bloomberg reports that investigators are going to try to get some of it back.
At least $73 million of political donations tied to Sam Bankman-Fried’s FTX may be at risk of being clawed back as bankruptcy lawyers sort through the remnants of his crypto empire in search of assets to repay creditors.
The wide-ranging contributions from Bankman-Fried and two of his top lieutenants, Ryan Salame and Nishad Singh, include more than $6 million to a super political action committee for House Democrats, $3.5 million for the GOP’s Senate Leadership Fund and $3 million for a fund that backs Senate Democrats.
That’s bad news for Democrats, who have used huge troves of donor cash, around $40 million of it, often claimed to be from small-dollar donors “chipping in” as their campaign ads like to put it, to pay for ballot harvesters who get paid per vote delivered, get-out-the-vote-early efforts, drop boxes, elections of secretaries of state to count the ballots, early votes in the bank, extended counting, and other questionable ways of “winning” elections. What they don’t use their money for is old fashioned campaigning, now that their candidates sit in their basements, avoid debates, and wait for their political machines to “deliver” the ballots by any means necessary.
It’s also significant that Bankman-Fried donated to the GOP Senate Leadership Fund, a super-PAC affiliated with Sen. Mitch McConnell, which refused to donate money to pro-Trump Senate candidates, such as that of Arizona’s Blake Masters, despite that being a winnable race. McConnell has been murmuring about “candidate quality” but the smell of it now is that the fund was bought by Bankman-Fried and it couldn’t finance people who might just give him trouble for his money. This is stinky stuff.
Worse still are the Democrats who took something like $40 million from this guy, and of course, do nothing constructive for the voters, only for their monied rich donors … such as Bankman-Fried.
Well, now that they have taken a lot, they will likely have to give back a lot, which will shut down some of these questionable campaign operations, disrupting them significantly. Will Soros, or for that matter, Mark Zuckerberg, be happy to make up the difference? Hard to think the answer is yes, what with the other dishonesties Bankman-Fried engaged in, notably donating through straw donors to make the donations bigger. That was what the Obama administration jailed Dinesh D’Souza for, in a piddly amount handed over to help a friend.
Bankman-Fried? He did it on a huge scale, and if the prosecutors are not corrupted by a double standard here, (and they might not be, given that Bankman-Fried’s victims were Democrats), then the likelihood of anyone duplicating what he did is unlikely, given the punishment Bankman-Fried is about to get.
It just goes to show that the Democrats have won their elections based on criminal activity, stolen money from unwitting investors, who thought their money was safe in Bankman-Fried’s crypto currency exchange. It wasn’t. It went to buy Bankman-Fried a lot of adulation and influence, a get-out-of-jail card for his activities until the money ran out. Now the Democrats (and some unsavory Republicans) are on the hook to return the stolen property. Let’s hope it defunds them and their corrupt operations good.
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