Twitter CEO, Elon Musk has claimed that Sam Bankman-Fried (SBF), former CEO of now-bankrupt FTX may have donated as much as $1 billion to Democrats and wonders where the money might be.
Musk made this claim while responding to a tweet by Will Manidis co-founder and CEO of ScienceIO, a healthcare data platform. Will alleged that SBF donated $40 million to politicians to evade jail for stealing over $10 billion of user funds. Will had termed SBF’s action as one of the highest ROI trades of all time.
If Musk’s claims turn out to be true, that would mean SBF’s donations to Democratic candidates before the collapse of FTX is well above the publicly declared sum of $40 million. Aside from donations to the Democratic candidates, SBF also admitted he made contributions to the Republican party in equivalent sums using dark channels which cannot be traced publicly.
While the crypto space is yet to fully recover from the sudden implosion of FTX, there are speculations in the industry that SBF might be let off the hook because of his large donations to politicians.
Many in the industry believe SBF’s case is not being treated with the emergency it requires. The media is also accused of intentionally watering down SBF’s mishandling of the firm’s funds. Prior to the collapse of FTX, SBF made headlines for his contributions to the U.S Midterm Elections. He is in fact the top donor from the crypto industry and the third-largest donor overall.
According to John Ray III, who now replaced SBF as CEO to oversee FTX’s bankruptcy proceedings, the firm suffered an unprecedented and complete failure of corporate control.
SBF to Face Regulators
Meanwhile, the United States House Financial Services Committee has slated December 13 for a hearing into events leading to FTX collapse and its consequent impact on the broader crypto ecosystem.
During this hearing, the committee will be taking testimonies from different parents on their roles in the event leading to FTX’s bankruptcy filing. It remains to be seen what will proceed with this hearing.
Also, Texas States Securities Board has also summoned SBF to a hearing on allegations that the company sold unregistered securities products through its yield-bearing service.