Three well-known Democratic organizations have resolved to return over $1 million to investors who lost their money as a result of misappropriation following the arrest of former FTX CEO Sam Bankman-Fried (SBF).
FTX’s Campaign Contributions
After the businessman was charged with eight counts of financial crimes on Dec. 16, the Democratic National Committee (DNC), the Democratic Senatorial Campaign Committee (DSCC), and the Democratic Congressional Campaign Committee (DCCC) vowed to repay SBF’s campaign contributions.
In an interview with the Verge, a DNC spokeswoman apparently confirmed this choice.
“Given the allegations around potential campaign finance violations by Bankman-Fried, we are setting aside funds in order to return the $815,000 in contributions since 2020. We will return as soon as we receive proper direction in the legal proceedings.”
According to the Washington Post, the other two Committees, DSCC and DCCC, have also reportedly promised to set aside $103,000 and $250,000, respectively. SBF previously acknowledged to having given “significantly” to both political parties.
$1 Billion For 2024 Elections
SBF has previously stated on a podcast that he intended to spend up to $1 billion to sway the 2024 presidential race. Karine Jean-Pierre, the White House press secretary, declined to respond to inquiries on the reimbursement of SBF’s prior party contributions.
She was queried about the Hatch Act, which forbids civil service personnel, particularly those working for federal agencies, from participating in certain political activities, and she replied, “I’m covered here by the Hatch Act. With his $5.2 million in contributions, Bankman was the second-largest “CEO contributor” to Biden’s 2020 campaign.
Bankman’s Arrest
Sam Bankman-Fried was refused bail in a Bahamas Magistrate Court and might spend up to two months at the nation’s Fox Hill Prison. This facility is well renowned for its “tough” working conditions and has a reputation for physically abusing prisoners.
Bankman-Fried will likely be held in the Bahamas until February while extradition procedures with the US move forward. The former CEO of FTX is facing accusations from the Justice Department, Commodity Futures Trading Commission, and Securities and Exchange Commission for deceiving lenders and investors.
The SBF case has generated a lot of discussions, with some believing that the defendant might face significant jail time, while others, including Shark Tank billionaire Kevin O’leary, have shown some sympathy. What happens to the former CEO of FTX remains to be seen.
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