Sam Bankman-Fried – the founder of the now-defunct crypto exchange FTX, once celebrated as the “poster boy” of crypto, is embroiled in a multi-billion dollar scandal involving the misuse of company assets for political donations.
Emails uncovered by The Wall Street Journal (WSJ) point to extensive involvement of the convicted exec’s family that could potentially lead to legal troubles.
More Legal Troubles For SBF and Family
Recently revealed emails by WSJ show that SBF’s family managed over $100 million in political contributions. The money, allegedly taken from FTX customer funds to influence the 2022 election, has sparked concerns of potential legal proceedings.
The emails detail Joe Bankman, SBF’s father, advising on financial strategies related to political donations, with evidence suggesting his direct involvement in the illicit operations. SBF’s mother, Barbara Fried, and brother, Gabriel Bankman-Fried, also allegedly managed the flow of funds to various political causes.
Barbara, who happens to be the co-founder of the super PAC Mind the Gap, claims to have directed funds to progressive groups, while Gabriel focuses on pandemic prevention efforts.
David Mason, former chairman of the Federal Election Commission, indicated that Joe Bankman’s involvement could lead to legal liabilities under campaign finance laws, citing “strong evidence” of his awareness of the illegal straw-donor scheme.
Despite this, a spokesperson for SBF’s father, who is a Stanford University law professor, maintained that “no knowledge of any alleged campaign finance violations.”
FTX Execs’ Role in Political Donation Fraud
The WSJ report also implicated former FTX executives Ryan Salame and Nishad Singh in the political donation scheme along with Bankman-Fried’s entire family.
Both have pleaded guilty to participating in the illegal straw-donor plot. Prosecutors claim that Salame diverted funds to Republican candidates to obscure their connection to Bankman-Fried, whereas Singh backed liberal candidates.
As reported earlier, Salame, who served as the co-CEO of FTX Digital Markets, was sentenced to 7.5 years in prison and three years of supervised release. He was ordered to forfeit $6 million and provide restitution of more than $5 million.