New indictment alleges Sam Bankman-Fried gave more than $100M to politicians

Bankman-Fried and his associates donated across party lines to various candidates and political action committees

August 14, 2023 05:47 pm

Former CEO of FTX Sam Bankman Fried | Shutterstock modified by Blockworks

Sam Bankman-Fried once again faces campaign finance charges that had previously been dropped by federal prosecutors, according to the superseding indictment filed Monday.

Prosecutors allege Bankman-Fried used more than $100 million of stolen customer funds to line the pockets of candidates and politicians.

US Attorney Damian Williams informed the court last week that his team intended to seek a superseding indictment, typically filed when new evidence has become available, to “make clear that Mr. Bankman-Fried remains charged with conducting an illegal campaign finance scheme,” court filings show.

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Bankman-Fried and his associates donated across party lines to various candidates and political action committees (PACs). Prosecutors say Bankman-Fried told other executives to make contributions to avoid limits set on individual donors.

Federal Election Commission data shows that Bankman-Fried personally gave more than $40 million in political donations in 2022. Ryan Salame, Bankman-Fried’s former co-CEO, and Nishad Singh, former director of engineering at FTX, were also big donors. Salame gave nearly $23 million almost exclusively to Republicans and related PACs, while Singh coughed up $8 million during the 2022 midterm election cycle.

Politicians who received FTX-linked donations have already started to hand over the cash after the Department of Justice made it clear these entities are not immune to clawbacks.

Reps. Marc Molinaro, R-NY, Elise Stefanik, R-NY, Brian Fitzpatrick, R-Penn., and Bob Latta, R-Ohio., reported that they had surrendered Bankman-Fried’s donations to US Marshals after receiving a letter from the DOJ to do so. Recovered funds will be used to repay creditors, victims and customers.

The new indictment comes after the disgraced FTX founder has spent his first few days at the Metropolitan Detention Center in Brooklyn, New York. Bankman-Fried’s $250 million bail was revoked last week after a federal judge found he had attempted to tamper with witnesses.

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