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- Newly exposed emails have shown that Sam Bankman and his family were involved in $100 million fraud in political contributions as part of a broad influence scheme ahead of the 2022 election.
- The revelations could lead to more charges against Sam Bankman-Fried and potentially his family members.
Sam Bankman, once a celebrated founder of the renowned crypto exchange FTX turned into a 25-year convict. Reminiscing, he was convicted of fraud and embezzlement earning a place as one of the biggest financial crimes in the world.
Clinging to the idea that the FTX saga was over, present development affirms otherwise. Newly revealed emails expose a troubling issue involving Sam’s family and more than $100 million in political contributions as part of a broad influence scheme ahead of the 2022 election.
Former FTX executive, Ryan Salame, is on the verge of serving seven and a half years of jail time after he pleaded guilty to his role in the fake donor scheme. Meanwhile, Nishad Singh former head of engineering of Alameda, is yet to receive sentencing. As both pleaded guilty to their roles, Ryan wired money to Republican candidates, while Singh directed money toward Democrats.
Noteworthy, Nishad Singh’s involvement also included mitigating Sam’s tax burden by directing donations through him.
Shockingly, the newly revealed emails have unveiled in-depth family participation. It’s worth mentioning that FTX had taken legal action against Sam’s parents. The two were accused of manipulating their positions as insiders to divert substantial sums of money from FTX inappropriately.
At the top of the list is Sam’s father, Joe Bankman, a law professor. Reportedly, Joe advised Salame on how to use the big chunks of money for donations potentially including him in the scheme.
Worth mentioning, As earlier reported on Crypto News Flash, XRP Attorney John Deaton, a Managing Partner of the Deaton Law Firm and the host of a CryptoLaw revealed that SBF’s father was also complacent as an FTX staff member. In an X post, Joe responded
We all know his Dad is also complicit. He didn’t structure those holding companies by himself. His dad didn’t demand a higher salary for nothing.
On the other side, Barbara Fried, Sam’s mother, was also a participant. She requested funds from Samn for progressive-leaning groups while co-founding Mind the Gap, a Democratic super PAC that helped Democrats win. Her lawyer has come out strong arguing that Babara’s actions were legal but the emails raise questions about her knowledge of the source of the funds.
Additionally, Gabriel, Sam’s brother, played a leading role in directing contributions. Emails from 2021 reveal Gabriel requesting donations for various public figures and organizations, which Sam often approved.
On September 7, 2022, the scandal reached a peak high after SBF and Salame in a dinner with Senate Minority Leader Mitch McConnell and Senator Susan Collins, aiming to discuss redirecting unspent federal COVID funds to pandemic prevention. Additionally, Republican senators also reveal Bankman-Fried and Salame pushing powerful Republican senators to redirect COVID funds toward future pandemic preparedness.
The Bankman-Fried family’s alleged involvement in this political donation scheme raises serious concerns about transparency in the cryptocurrency landscape. Regulatory watchdogs around the globe are likely to up the notch on cryptocurrencies in an effort to protect investors and prevent similar scandals.
Meanwhile, Sam Bankman-Fried’s legal woes continue. While his lawyers are appealing his 25-year sentence, this new revelation could lead to further charges against him and potentially his family members.
