SBF Dark Money Contributions Sparked FEC Investigation

A neighborhood watchdog group has called for an investigation into political contributions Sam Bankman-Fried has made in the past. The organization claims that the former CEO of FTX admitted to breaking federal law by surreptitiously donating tens of millions of dollars to Republican candidates and campaigns in violation of the law. This breach occurred while the former CEO of FTX was employed by the company.

On December 8, members of the Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Federal Election Commission (FEC), citing statements made by Bankman-Fried during a November 16 interview with bitcoin YouTuber Tiffany fong. The interview took place on November 16, and the comments were uploaded to YouTube on November 29 after they were made public. CREW cited in its lawsuit that wealthy taxpayers frequently use the Citizen United case to circumvent federal disclosure standards by using intermediaries and claiming they didn’t know where the money was going. This is done under the pretext that they did not know where the money was going. This is done with the intent to avoid complying with the requirements of the law.

According to the group, Bankman-Fried had engaged in “direct and serious violations of the Federal Election Campaign Law.” Political donations for a single calendar year that total more than $200 are subject to the public disclosure requirement of this law. This statute, the organization alleges, had been violated by Bankman-Fried.

During her conversation with Fong on November 16, Bankman-Fried said she had “given roughly the same amount to both parties.”

According to OpenSecrets, he was the second largest donor to the Democrats; therefore, it is reasonable to conclude that the “hidden” contributions include a substantial amount of money given that he was the second largest contributor to the Democrats.

Bankman-Fried has been on what one might call an apology tour ever since she lost prominence. [Here’s a good example:] Among his many other public engagements, he has participated in a wide range of interviews, some of which have aired on Good Morning America, The New York Times’ DealBook Summit, and other Twitter spots.

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