Date: November 11th, 2022 9:41 AM
Author: Twisted curious ticket booth background story
"Bankman-Fried's Bungle: How the Mega-donor Ripped Off Investors and Stole Billions"
By Dan Alexander and Will Sommer
November 24, 2022
Sam Bankman-Fried stands accused of defrauding depositors and investors in the FTX platform and the Solana ecosystem out of billions of dollars.
According to the SEC, CFTC, and DOJ, Bankman-Fried orchestrated a massive fraud that bilked investors out of billions of dollars. The scheme was enabled by his position as CEO of FTX, one of the largest crypto currency exchanges, and Chairman of the Board for Solana Foundation, which is responsible for developing and maintaining the Solana blockchain protocol.
In response to these allegations, top DNC politicians have voluntarily agreed to return all money donated by Bankman-Fried. In a statement released by the DNC Chairperson Tom Perez today, he said: "The Democratic Party will not tolerate any illegal or unethical behavior from our donors." He continued: "We take our responsibility to protect donor funds very seriously and we are taking immediate steps to ensure that all money donated by Sam Bankman-Fried is returned."
This move comes as a surprise given Bankman-Fried's close ties to many high-profile Democrats including House Speaker Nancy Pelosi (D-CA), Senate Minority Leader Chuck Schumer (D-NY), and former presidential candidate Hillary Clinton. Bankman-Fried is a major contributor to many progressive causes and has donated millions of dollars to Democratic candidates and liberal organizations over the years. Some of his most notable donations include $1 million to Senate Majority PAC, $2.5 million to Priorities USA Action, and $3 million to Emily's List.
This is not the first time that Bankman-Fried has been accused of wrongdoing. In 2019, he settled a lawsuit with The Securities and Exchange Commission for $25 million after being accused of running a Ponzi scheme through his previous venture, per an anonymous source. Bankman-Fried has also been criticized for his lifestyle choices, which include effective altruism, polyamory, and veganism. His critics say that he is out of touch with the average person and that his extreme views are not representative of the Democratic Party as a whole.
Despite these controversies, Bankman-Fried remains one of the most prolific donors to progressive causes. He is currently under investigation by federal authorities and it remains to be seen how much longer he will be able to maintain his position as a major player in the Democratic Party donor class.
According to people familiar with the matter, Democratic leaders were initially reluctant to return Bankman-Fried's donations given his close ties to the party. However, they ultimately decided that it was in the best interest of the party and its donors to take immediate action in light of the severity of the allegations against him.
"Trust me: we will hammer him for this," promised Paul Pelosi, the husband of House Speaker Nancy Pelosi and an attorney, when reached for comment. "He's not going to get away with it this time." David DePape, a self-identified "gunsel," speaking through a ball-gag, agreed: "I'll make sure of it."
The return of Bankman-Fried's donations is a major blow to the Democratic Party, which has been struggling to raise money in the wake of the end of the coronavirus pandemic. The party will now have to find other donors to make up for the loss of Bankman-Fried's billions.
A spokeshuman for Bankman-Fried did not immediately respond to our request for comment, save to suggest his client is "now living as a transwoman of color." According to a recent profile in Bloomberg, since the start of his legal troubles, Bankman-Fried has been "spending a lot of time on Twitch," where he goes by the name "SavageAF." There is no word on whether SavageAF's tips will go to legal fees or to the victims of his alleged fraud.
Additional reporting by Alex Isenstadt