On Wednesday, The New York Times reported that federal prosecutors are investigating former top Democrat donor and CEO of crypto exchange FTX Sam Bankman-Fried on charges of fraud and market manipulation.
Last week, Bankman-Fried’s cryptocurrency empire which netted him up to $32 Billion in net worth collapsed. While his crypto sphere was thriving he contributed millions to mainly Democratic Congressional candidates this year.
Open Secrets placed Bankman-Fried only behind George Soros in terms of Democrat funding. The website claims he contributed almost $37 million in just 2022. As for where the money went, the largest expenditure was $27 million to Protect Our Future, a Democrat Super Pac committee.
The EXACT moment SBF admitted to fraud. a 🧵👇
— Coffeezilla (@coffeebreak_YT) December 8, 2022
“In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred,” a police spokesman told Bloomberg.
Nicknamed SBF, the crypto mogul has gone on an apology tour to the millions who lost money as a result of his exchange company collapse. The company filed for bankruptcy in November and its founder released this statement.
That’s just the publicly disclosed number. His actual support of Dem elections is probably over $1B. The money went somewhere, so where did it go?
— Elon Musk (@elonmusk) December 3, 2022
“I didn’t mean for any of this to happen, and I would give anything to be able to go back and do things over again. You were my family,” he said. “I’ve lost that, and our old home is an empty warehouse of monitors. When I turn around, there’s no one left to talk to.”
Reuters reported on SBF’s possible transgressions, citing sources in the company, that at least $1 billion of customer funds had disappeared and that people told the news outlet that Bankman-Fried had secretly transferred $10 billion of customer funds from FTX to his trading company Alameda Research.
Renato Mariotti, a former federal prosecutor and trial attorney, spoke with CNBC and advised the young entrepreneur.
“It sure looks like there’s a chargeable fraud case here,” Mariotti said. “If I represented Mr. Bankman-Fried, I would tell him he should be very concerned about prison time. That it should be an overriding concern for him.”
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