The three renowned Democratic campaign groups have announced their plans to return over a million dollars Sam Bankman-Fried made donated for the 2020 and 2022 political campaign cycles.
According to reports from the Washington Post, the groups will return the money to the defunct FTX customers that have lost funds due to the fallout of the FTX exchange. The report comes days after the former CEO was arrested for allegedly stealing customers’ funds and making illegal donations to politicians for the campaign.
A representative for the Democratic National Committee announced that Bankman-Fried would be returning $815,000. Additionally, the party’s Senate and House campaign committees will set aside a combined $353,000 to refund after getting guidance from the court.
The Democrat’s decision to return the funds puts additional pressure on a wide range of other political organizations, many of whom have not yet said how they will move forward after accepting the FTX founder’s significant contributions during the 2022 election cycle. Their decision may also be motivated by a desire to distance themselves from the former CEO’s crimes.
So far, Bankman-Fried has been reported to have contributed approximately $40 million to campaign committees and organizations largely supporting democrats this year alone. The disgraced CEO also claimed that the gave money to the Republican party(Grand Old Party), but such contributions were made through nonprofit groups that do not disclose the identity of their donors.
The Woes of Sam Bankman-Fried
The former FTX CEO was accused of mishandling customers’ funds and making transfers to his subsidiary firm, Alameda Research LLC after the firm stopped customers’ withdrawals and eventually filed for bankruptcy.
A report also revealed that prosecutors from the United States then began investigating the issues that could have led the disgraced CEO to file for bankruptcy protection. The report stated that Bankman-Fried has consistently denied misusing consumers’ money even though he has acknowledged making mistakes in running the FTX exchange.
Numerous disclosures regarding Bankman-Fried were made as a result of the FTX exchange’s failure. According to another story, Bankman-Fried received $300 million from FTX’s most recent fund round.
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