A scandal of potentially party-ending proportions has rocked the crypto world, taking billions of customer funds down with it.
Just days after the midterm elections, which many believe produced some dubious results, Sam Bankman-Fried, aka “SBF,” saw his business, cryptocurrency exchange FTX, file for bankruptcy after it funneled $40 million to the Democratic Party.
That money, reports the New York Post, was spent “on ‘get-out-the-vote’ and other shadowy ballot harvesting mechanics for the midterms.”
SBF, described as “a math genius with poor social skills,” was reportedly worth — at just 30 years of age — $16 billion. Now he and his co-founder, Gary Wang, are “under supervision” by authorities in the Bahamas, after a plan to make a run for Dubai was uncovered.
According to Reuters‘ sources, SBF “secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research.”
“A large portion of that total has since disappeared, [the sources] said,” reports Reuters. “One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.”
Making matters even more explosive is the impact SBF likely had on the outcome of the midterm elections.
Reports The Post:
SBF certainly “impacted” the midterms, funneling his millions into the Democratic National Committee and Democrat-friendly PACs such as Protect Our Future and Guarding Against Pandemics.
He donated to committees aligned with Nancy Pelosi and Chuck Schumer to help Democrats win races.
He lavished his largesse on “pro-crypto Democrats” like New York Sen. Kirsten Gillibrand, who was sponsoring a bill to lock the Securities and Exchange Commission out of regulating the crypto market.
He also visited the White House, meeting with top Biden adviser Steve Ricchetti on April 22 and May 12, according to the Washington Free Beacon.
“No wonder the Biden administration has been weak on regulating the crypto market. It was the goose that laid the golden egg,” writes Miranda Devine for The Post. “Friends in high places.”
Indeed, only George Soros donated more to the Democrats in the 2021-2022 election cycle, OpenSecrets reveals.
According to Ben Kew, editor-at-large for El American, “This is the SCANDAL everyone should be talking about!”
FTX CEO Sam Bankman-Fried bankrolled the Democratic Party's midterms war chest to the sum of $40,000,000 using funds from his now-bankrupt crypto exchange. Meanwhile, blameless customers have likely lost BILLIONS in savings.
This is the SCANDAL everyone should be talking about! pic.twitter.com/yRr2PSYQco
— Ben Kew 🐶 (@ben_kew) November 13, 2022
Most disturbing in this crypto debacle are SBF’s ties, not just to the White House, but to Ukraine and the World Economic Forum.
“Curiously, the Ukrainian government launched a cryptocurrency donation website in March that was backed by FTX,” Blaze Media reports.
The conservative outlet then cited a March report from CoinDesk that read: “‘Aid for Ukraine,’ which has the backing of crypto exchange FTX, staking platform Everstake, and Ukraine’s Kuna exchange, will route donated crypto to the National Bank of Ukraine, Everstake’s Head of Growth Vlad Likhuta told CoinDesk. Ukraine’s crypto-savvy Ministry of Digital Transformation is also involved.”
“Aid For Ukraine is cooperating with the cryptocurrency exchange FTX which converts crypto funds received into fiat and sends the donations to the National Bank of Ukraine,” an Everstake press release explained. “This marks the first-ever instance of a cryptocurrency exchange directly cooperating with a public financial entity to provide a conduit for crypto donations. Earlier this month, FTX already converted $1 million worth of SOL and transferred it to the National Bank of Ukraine.”
“At the onset of the conflict in Ukraine, FTX felt the need to provide assistance in any way it could. By working with the Ministry of Digital Transformation to set up payment rails and facilitate the conversion of crypto donations into fiat currency, we have given the National Bank of Ukraine the ability to deliver aid and resources to the people who need it most,” SBF said at the time, according to The Blaze. “We are grateful for the opportunity to work with Sergey and the Everstake team as they continue to work tirelessly in helping Ukrainians as they suffer from this conflict.”
FTX was also listed as a partner on the World Economic Forum’s website, but a search for the company’s link now reveals an error page.
Online, many are calling SBF’s “backdoor” maneuvers a money-laundering scheme that involves taxpayer dollars.
“There are now reports that tens of billions in American ‘military aid’ to Ukraine has not been used to fight Russia but instead was invested into FTX—sending it to Ukraine, transferring it to FTX, and then laundering it back to US Democrats who originally voted to send the money,” reports Ben Swann.
There are now reports that tens of billions in American “military aid” to Ukraine has not been used to fight Russia but instead was invested into FTX—sending it to Ukraine, transferring it to FTX, and then laundering it back to US Democrats who originally voted to send the money.
— Ben Swann (@BenSwann_) November 13, 2022
If true, many note it would mean the Dems straight-up stole American taxpayer dollars to fund their midterm election efforts — an allegation that, in a sane world, would dominate every news cycle.
But as conservative actor James Woods pointed out, that outcome is unlikely.
“The Democrat-Ukraine-FTX money laundering circle jerk is the kind of story that would have won the Pulitzer Prize for the Washington Post back when either of them meant something,” Woods tweeted. “Now it’ll just be a Twitter footnote at best.”
The Democrat-Ukraine-FTX money laundering circle jerk is the kind of story that would have won the Pulitzer Prize for the Washington Post back when either of them meant something.
Now it’ll just be a Twitter footnote at best.
— James Woods (@RealJamesWoods) November 14, 2022
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