40% of Congress Received Donations Tied to Sam Bankman-Fried
More than one-third of Congress received political donations tied to SBF, and many have not returned it despite his conviction.
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FTX founder and former CEO Sam Bankman was convicted last week, with the jury finding him guilty on seven counts against him. The conviction marks the conclusion of the first part of the SBF trial, with sentencing set for 2024. With a conviction on all counts, SBF might face up to 115 years maximum term in prison.
However, many experts believe he is more likely to get around 25 years. Even with the possibility of a relatively short sentence for the 31-year-old, the road ahead remains rough for the one-time crypto golden boy. SBF is still scheduled for a second trial on March 11, where he faces five criminal charges of bribery and other related offenses. The second trial will further shine the spotlight on how Bankman-Fried spent the money of FTX customers to curry favor from stakeholders and politicians.
According to data from Unusual Whales, SBF and his associates donated millions to around 40% of the current members of Congress. Some donations went to the Pacs that support key figures in Congress, including Senate leader Mitch McConnell.
SBF, Sam Bankman-Fried has been found guilty.
However around 40% of CONGRESS(!!!) received donations from SBF and FTX that were mixed user funds!
Only a few politicians returned or donated the funds.
Here is the full list of everyone who has received funds from FTX and Sam. pic.twitter.com/2KWysjLEdP — unusual_whales (@unusual_whales) November 3, 2023
How SBF and Associates Donated
Details of SBF donations have been emerging long before now. But the recent trial also saw several of his allies disclose how the former CEO donated to various campaigns in their names. Documents made available by prosecutors at the trial showed that SBF and his partners donated $50 million in 2022 to dark money groups. Dark money groups refer to political groups that don't disclose the names of donors.
According to reports, SBF and his allies used these groups to donate money to politicians across bi-partisan lines. While SBF identified publicly as a major donor for Democrats, he later admitted that he made dark contributions to Republican organizations. Some of these donations to republican groups were through the co-CEO of FTX, Ryan Salame. Salame pleaded guilty to charges bordering on violating campaign finance and money transmitting charges.
The reports also indicted SBF mother, Barbara Fried, as encouraging her son to make donations in the name of his associates, including FTX's former head of engineering, Nishad Singh. Former CEO of Alameda Research, Caroline Ellison, donated millions to right-leaning organizations.
Politicians Still Holding On to Funds
Despite the public trial of SBF and the disclosure that donations were primarily customers' funds, most politicians have yet to return the money. Unusual Whales claimed that only a few politicians had returned the funds. But, it did not provide any particular details on those who have refunded FTX.
Meanwhile, the bankruptcy estate of FTX has not provided updates on its effort to claw back money from the politicians and PAC. The estate sent confidential letters to the politicians and group in February 2023 asking that they return funds or face legal action. It warned at the time that the recipients should not donate the funds to charity.
