Washington has its own giant FTX problem, in what now appears to be millions of dollars in dirty donations. It’s a donor scandal for the ages, and yet politicians are mum on what they intend to do about it.
SBF donated $6 million to the House Majority PAC, an outside group affiliated with Speaker Nancy Pelosi.
According to Forbes, which obtained a copy of his draft testimony, we now know what Bankman-Fried would have told lawmakers had he not been arrested.
“I would like to start by formally stating, under oath: I f***ed up,” he wrote.
Lawyers for the bankrupt crypto exchange FTX will square off in court on Wednesday to fight a demand for internal records from an insolvent affiliate based in the Bahamas as the two wrestle over scraps of the once high-flying business.
Worth as much as $26.5 billion, Bankman-Fried donated $36 million to Democrats during the 2022 midterms. He said he gave “about the same amount” to Republicans in dark money, but has not provided evidence for the claim.
In mid-2020, FTX’s chief engineer made a secret change to the cryptocurrency exchange’s software.
He tweaked the code to exempt Alameda Research, a hedge fund owned by FTX founder Sam Bankman-Fried, from a feature on the trading platform that would have automatically sold off Alameda’s assets if it was losing too much borrowed money.
Democrat Mega-donor and FTX founder Sam Bankman-Fried was arrested in the Bahamas on Monday, just hours before he was scheduled to testify in front of the House Financial Services Committee on Tuesday.
Police said Mr Bankman-Fried was arrested for “financial offences” against laws in the US and The Bahamas.
Last month FTX filed for bankruptcy in the US, leaving many users unable to withdraw their funds.
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