YEREVAN – (CoinChapter.com) The recently crashed FTX exchange sent ripples across the crypto market, threatening far-reaching repercussions. However, a political aspect of the FTX demise has been circulating the web in recent hours. Sources report that FTX founder Sam Bankman-Fried (SBF), has been the second-largest Democratic Party donor and could have been laundering money through Ukraine donations.
Sam Bankman-Fried and Democrats
Political affiliation is no crime, and many prominent players in the crypto sphere have been outspoken about their preferences. SBF cranked it up a notch and promised the Democratic party $1 billion in donations to various causes.
While the former CEO didn’t uphold the initial promise and called it “dumb,” SBF did donate around $40 million, according to Financial Times. $36 million went to the Democratic Party, while the Republicans received nearly $5 million. The contribution made SBF the second largest Democrat donor after George Soros, who coughed up $126 million.
Bradley Beychok, the co-founder of the Democratic super political action committee (Pac) American Bridge 21st Century, commented on SBF’s involvement, saying it came out of the blue.
[Sam Bankman-Fried] came on the scene out of nowhere [and] became a large supporter of different causes and candidates very quickly.commented the official.
Democratic Party not accountable for the illegal money
SBF’s donations contributed to several causes, including Pandemic prevention($27 million). He also endorsed 25 Democrat candidates in congressional races, 18 of which won.
The source of the generous donations raised many questions. However, even if the funds were illegal, the Democratic Party cannot be held accountable. James Cox, professor of corporate and securities law at Duke University, cited the “bona fide” principle, which protects individuals who accept money with no knowledge it derives from illicit activity.
However, the expert noted that the Party might face “the opprobrium of being associated with ill-gotten gains” after all.
SBF laundering money through Ukraine?
Ben Swann, the founder, and CEO of blockchain-based news channel Sovren Media, also assessed the circulating news. He pointed out that Bankman-Fried has been an “outspoken supporter of Ukraine” on top of his Democratic affiliation.
Months ago, FTX even partnered with Ukraine to launch a new crypto donation website. Ukraine ranks #2 in the world for crypto use, and undoubtedly, business has been booming. The country has raised over $60 million through more than 120,000 crypto asset donations since the start of the invasion.tweeted Swann.
According to the CEO, there are “reports” confirming a misuse of American donations to Ukraine.
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.added the executive.
The Ukrainian government did launch a crypto donation website with FTX in March 2022. However, Swann did not present any evidence to support the money-laundering claim.
Lark Davis, a crypto analyst with a substantial following, tweeted the same premise, calling it a “tinfoil hat thought.”
True, SBF’s reputation is beyond repair, as thousands of FTX clients saw no refunds. Additionally, the claims of money laundering through donations to Ukraine could further exacerbate the situation. However, further proof is necessary to back the claims. So far, no such “reports” have surfaced.