Cascading Trouble for FTX Crypto Exchange Leads to Inquiries of Campaign Donations to Democrats and Regulators


Posted originally on the conservative tree house on November 12, 2022 | sundance

FTX crypto currency exchange CEO Sam Bankman-Fried is a major donor to multiple progressive causes and politicians. This week as FTX starts to collapse, the financial system underneath the exchange looks more like a Ponzi scheme falling apart.

The CEO had been a major donor to regulators on Capitol Hill, and the tentacles of FTX extend to Ukraine where Sam Bankman-Fried was operating to support the Ukraine government with crypto currency collections and donations. The FTX corporation and CEO Sam Bankman-Fried is now under multiple investigations.  Here’s the 90-second recap of the current dynamic. WATCH:

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(Via Daily Caller) Sam Bankman-Fried, prolific Democratic donor and ex-CEO of now-bankrupt cryptocurrency exchange FTX, funded the campaigns of members of Congress overseeing the Commodity Futures Trading Commission (CFTC), one of the key bodies tasked with regulating the crypto industry and the subject of Bankman-Fried’s aggressive lobbying.

Bankman-Fried’s FTX is currently under investigation by the CFTC and the Securities and Exchange Commission (SEC) after Bankman-Fried allegedly moved $10 billion in client assets from his crypto exchange to his trading firm Alameda Research, and a liquidity crisis at his exchange which prompted the company to file for bankruptcy. However, prior to the agency’s probe, Bankman-Fried aggressively courted the CFTC – and funded several key lawmakers charged with overseeing the agency, pouring cash into their campaign coffers. (read more)

(Via CoinDesk) The past week has seen a dizzying downward spiral for Sam Bankman-Fried’s huge crypto empire. Bankman-Fried’s FTX crypto exchange has paused withdrawals, and a tentative bailout from rival Binance appears to be kaput. That could put depositor funds at risk, and certainly spells a major setback for not only Bankman-Fried but for the cryptocurrency industry as a whole.

These downfalls aren’t rare in crypto, which is subject to extreme boom-bust cycles. But FTX and Bankman-Fried are unique in the stature they achieved before self-immolating. Over the past three years, FTX has come to be widely regarded as a reputable exchange, despite not submitting to U.S. regulation. Bankman-Fried has himself become globally influential, thanks to his thoughts on cryptocurrency regulation and his financial support for U.S. electoral candidates – not necessarily in that order.

These narratives about both FTX and Bankman-Fried are now clearly dead in the water, given recent evidence that everything was not as it seemed at the exchange, or at Bankman-Fried’s other firm, Alameda Research. (read more)

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