Why Joe Biden’s Administration is Silent on 5.2 Million donations from SBF?

LAGOS (CoinChapter.com) — President Joe Biden’s administration has declined to comment on whether he is planning to return the political donations received from Sam Bankman-Fried following recent the collapse of FTX.

In detail, White House press secretary Karine Jean-Pierre while addressing newsmen at a state briefing declined to answer questions from a reporter on whether Joe Biden plans to return the $5.2 million donations given by the embattled FTX founder to his campaign in 2020.

Bankman-Fried whom the US Justice Department has charged with swindling investors out of at least $1.8 billion was one of Biden’s main contributors in 2020. He was also one of the Democratic Party’s biggest donors and met with Biden’s White House advisers before FTX collapsed.

He was the second-largest donor to congressional Democrats ahead of last month’s midterm election. Notably, second only to left-wing billionaire George Soros, Sam Bankman-Fried donated $39.2 million to the Democratic Party.

Associated Press‘s Zeke Miller at the briefing quizzed Jean-Pierre on the president’s plans after Bankman-Fried fraudulent actions came to light. However, the White House press secretary in her response chose to plead the Hatch Act.

“So look, I’m covered here by the Hatch Act — [I’m] limited on what I can say and anything that’s connected to political contributions from here. I would have to refer you to the DNC.”

Jean-Pierre said.

Furthermore, when asked for her answer regarding Biden’s opinion on FTX fallout Jean-Pierre dodged the question. “I just cannot speak to this from here, even his thoughts,” she said.

Violations of the Hatch Act typically involve direct support by federal officials to a candidate or party. This is as opposed to making a statement that could apply to candidates of both parties. Such as calling on politicians to offload historical contributions.

‘Lying By Ommission Is Still Lying’

Meanwhile, the cryptocurrency industry which is still reeling from the catastrophic collapse of Sam Bankman-Fried’s FTX has slammed Biden’s administration for refusing to disclose whether the president intends to return the political donations.

A Twitter user blasted the White House press secretary who pleaded the Hatch Act to avoid questions. She alleged that Jean-Pierre was complicit in the corruption act adding that “Lying by omission is still lying.”

Similarly, web3 gamer @stillgray posited that Joe Biden’s administration was guilty of accepting stolen customers’ funds. He argued that the White House press secretary’s decision to remain quiet further buttressed the opinion that the Democratic Party was in bed with Bankman-Fried.

Recall that on Dec. 13 federal prosecutors in the Southern District of New York charged Bankman-Fried with eight counts, including conspiracy to commit campaign finance violations. Manhattan US Attorney Damian Williams claimed the illegal donations from Bankman-Fried amounted to tens of millions of dollars.

Notably, in 2020 election, Bankman-Fried spent $10 million backing Biden’s campaign — much of that indirectly. He also gave $50,000 in October 2020 to the Biden Victory Fund. Furthermore, according to Federal Election Commission records, FTX founder donated another $2,800 directly to the Biden campaign in October.

Meanwhile, Bill Ackman CEO of Pershing Square alleged that Bankman-Fried was arrested to conceal a cover-up. He alleged that Bankman-Fried was arrested in the Bahamas to prevent him from addressing the US Congress.

Another user also noted that the embattled developer used customers funds to manipulate the election for the Democrats.

Joe Biden Administration Is Monitoring Crypto Situation

Meanwhile, Karine Jean-Pierre has said that after recent developments prudent regulation is needed for cryptocurrencies. She added that President Joe Biden’s administration and other relevant government agencies will monitor the situation as it develops.

Jean-Pierre however noted that cryptocurrencies affect everyday Americans and the government is observing the current situation. Similarly, crypto critic and Democratic senator Elizabeth Warren have used the crisis to call for the regulation of cryptocurrencies.

“The collapse of one of the largest crypto platforms shows how much of the industry appears to be smoke and mirrors. We need more aggressive enforcement and I’m going to keep pushing @SECGov to enforce the law to protect consumers and financial stability.”

Elizabeth Warren said.

However, Brad Garlinghouse CEO of Ripple Labs and Brain Armstrong CEO of Coinbase have reiterated their support for cryptocurrencies. He explained that FTX was an offshore exchange not regulated by the SEC. He noted that a friendly licensing framework to protect consumers should be adopted by countries.