Former FTX CEO Sam Bankman-Fried, who is currently facing fraud charges in connection with the collapse of a bankrupt cryptocurrency exchange, has been revealed to have donated $50 million to undisclosed politically active groups during the 2022 election cycle. Newly released documents show that Bankman-Fried, his cryptocurrency exchange FTX, and two of his former colleagues made contributions to various nonprofits associated with prominent Republican senators, Democratic Senate Majority Leader Chuck Schumer, and other lesser-known groups that have quietly influenced politics.
The documents provide a comprehensive overview of Bankman-Fried and his allies’ involvement with “dark money” organizations. Nishad Singh, FTX’s former head of engineering, testified this week, shedding light on how Bankman-Fried utilized a private signal chat called “Donation Processing” to request that certain contributions be made in Singh’s name. Furthermore, Bankman-Fried’s mother, Barbara Fried, allegedly urged donations made by her son to be attributed to Singh, according to evidence from a lawsuit brought by FTX.
Bankman-Fried is currently on trial for multiple federal fraud charges and stands accused of using FTX customer funds to support over $100 million in political donations during the 2022 midterms. If convicted, he could face a life sentence in prison. Bankman-Fried previously stated in an interview that he made these “dark” contributions to avoid public knowledge of his support for Republican-leaning organizations. However, while privately funding conservative dark money groups, Bankman-Fried publicly portrayed himself as a supporter of the Democratic Party.
Separately, Bankman-Fried registered over $36 million in donations to Democratic campaigns and transparent outside groups during the 2022 cycle, according to data from nonpartisan organization OpenSecrets. He has been a vocal advocate for cryptocurrency in Washington, D.C., directly lobbying lawmakers.
Prosecutors recently filed evidence listing the organizations that received money from Bankman-Fried and his associates. In addition, charts were presented showing how millions of dollars from FTX customers and linked accounts were used for political donations. These documents clearly establish Bankman-Fried as the primary “dark money” donor among the former FTX executives and the company itself.
Ryan Salame, the former CEO of FTX’s digital markets division, is said to have donated millions of dollars to Republican political action committees and affiliated “dark money” groups using funds from FTX’s hedge fund, Alameda Research. Salame pleaded guilty last month to federal campaign finance and money-transmitting crimes. Caroline Ellison, who previously ran Alameda and was romantically involved with Bankman-Fried, also made significant donations to right-leaning nonprofit organizations. Ellison has pleaded guilty to multiple federal charges and testified against Bankman-Fried last week.
Government watchdog group Citizens for Responsibility and Ethics in Washington estimated that Bankman-Fried’s “dark money” contributions would amount to approximately $37 million. However, the recently released list of donations suggests that the figure is closer to $47 million for the 2022 cycle alone.
Representatives for Bankman-Fried, Ellison, and Salame have either declined to comment or not responded to requests for comment.
So, which groups did Bankman-Fried and Salame donate to? Bankman-Fried gave $10 million to a McConnell-linked organization called One Nation in August 2022, according to prosecutors. The funds were directly sourced from an Alameda Research account. One Nation was active during the November elections, running ads in U.S. Senate races in Wisconsin, Ohio, Georgia, and Arizona. Salame reportedly used $5.5 million from an Alameda subsidiary to donate to One Nation.
Salame also allegedly made a $2.8 million donation to the American Action Network, a conservative nonprofit supporting House Republican policies, and a $3.2 million donation to a nonprofit called American Prosperity Alliance. The latter group opposes the Inflation Reduction Act and spent over $11 million on advertising and public opinion research.
Ellison, on the other hand, donated $6 million to Defending America Together, which heavily invested in midterm races in Alabama and Pennsylvania.
Bankman-Fried donated $8.5 million to Majority Forward, a group aligned with Schumer, while also contributing $17.5 million to Guarding Against Pandemics, a nonprofit advocating for increased funding to prevent pandemics. The latter organization was led by Bankman-Fried’s brother, Gabe.
FTX, the cryptocurrency exchange, also supported lesser-known “dark money” organizations tied to various political agendas.
Bankman-Fried’s trial continues, as prosecutors present evidence of his involvement in these clandestine political donations. The full extent of his impact on the political landscape is yet to be revealed.
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