US Federal Attorney Urges Recipients of Donations from SBF to Return

US authorities urged SBF funds to be returned to investors immediately. (Photo; Doc. The Coin Republic)

JAKARTA – The FTX bankruptcy sparked a tightening of crypto rules and an in-depth investigation by the authorities. In this case, the US Federal Attorney has investigated the donation of funds from FTX founder Sam Bankman-Fried (SBF) to political parties in the US.

As previously reported, Sam Bankman-Fried and two FTX executives have made generous donations to the Democratic Party. Later it was discovered that the SBF and his colleagues were pouring funds into the Republican Party.

Following SBF's arrest in the Bahamas last week, the District Attorney's Office sent emails to several Democratic political organizations, including the party's official campaign office, some of its top PACs, and the individual campaigns of several politicians, including Representative Hakeem Jeffries (D-NY), reported by Bitcoin.com.

Through the email, US authorities requested any information related to the donation from SBF, its associates, and its companies, the New York Times reported. Referring to the FTX case as "the largest campaign finance scandal in recent years", the publication noted that the Justice Department's investigation "appears to be an attempt to gather evidence against Mr. Bankman-Fried and other former FTX executives, not against their political beneficiaries."

The Federal Prosecutor's Office urges any person or political organization that has received funds from SBF cs to immediately return them to investors who are victims of the FTX bankruptcy.

"To any person, entity or political campaign who has received stolen customer money, we ask that you work with us to return the money to innocent victims", US Attorney Damian Williams said in a press conference.

One of the formal charges federal prosecutors unveiled last week after SBF's arrest was conspiring to violate campaign finance laws. The former FTX CEO was the second-biggest campaign donor of 2020, donating nearly $45 million, most of it to Democratic campaigns and committees.

In an interview before his arrest, Bankman-Fried claimed he made an equal amount of illicit donations to Republicans. Tesla CEO and Twitter boss Elon Musk believe the former FTX boss donated more than $1 billion to the Democratic Party.

Federal Election Commission regulations require that donations be returned if they are later found to be illegal, even if the funds have been spent and new money must be collected.

Nishad Singh, another former FTX executive, also donated nearly $9.7 million, most of it to Democratic candidates and groups, the news outlet said. Prosecutors are also reportedly investigating donations to Republican campaigns and committees by Ryan Salame, another former FTX executive, which provided $24 million, primarily to Republican candidates and committees.

The bankruptcy of FTX has shaken the crypto industry. Most cryptocurrencies are experiencing a price decline. The crypto community calls this phase a prolonged bear market phase.