The Bankman-Fried family, known for their ties to the collapsed crypto exchange FTX, is now under scrutiny for their involvement in a $100 million political donation scandal. According to a report by the Wall Street Journal, undisclosed emails have surfaced, alleging that the family was deeply involved in managing and directing these funds, which were reportedly misappropriated from FTX customer assets and accounts.
One key figure in this scandal is Joe Bankman, Sam Bankman-Fried’s father and a Stanford University law professor. The emails suggest that Joe played a significant role in advising financial strategies related to political donations, leading to accusations of an illegal straw-donor scheme. Despite these allegations, a spokesperson for Joe denied any knowledge of campaign finance violations, but the evidence presented in the emails tells a different story.
Barbara Fried, Sam’s mother and co-founder of the political action committee Mind the Gap, is also implicated in the scandal. She allegedly directed funds to various progressive groups and initiatives, while Sam’s brother, Gabriel Bankman-Fried, channeled donations towards pandemic prevention efforts using FTX funds. This coordinated effort was aimed at influencing the 2022 election by supporting different political entities and causes.
David Mason, a former chairman of the Federal Election Commission, emphasized the compelling nature of the evidence presented in the emails. He suggested that Joe Bankman’s involvement could lead to serious legal consequences under campaign finance laws due to strong evidence of his knowledge and participation in the illicit operations.
In addition to the Bankman-Fried family, former FTX executives have also been implicated in the scandal. Ryan Salame, former co-CEO of FTX Digital Markets, was recently sentenced to 7.5 years in prison after pleading guilty to charges including conspiracy to operate an unlicensed money transmitting business and engaging in campaign finance fraud. This comes after guilty pleas from other former executives, Caroline Ellison and Nishad Singh, who are awaiting sentencing.
The length of Salame’s sentence came as a surprise, as the prosecution had only requested 7 years. As legal proceedings continue, the potential involvement of SBF’s family in the scandal could have serious consequences. The ongoing legal repercussions of the financial misconduct within FTX are evident through the involvement of Sam’s family and former executives in this scheme.
Currently serving a 25-year prison sentence for his connection to FTX, Sam Bankman-Fried’s family and former executives continue to face scrutiny for their roles in the $100 million political donation scandal. This case serves as a reminder of the importance of transparency and ethical conduct in financial and political matters.