Cryptocurrencies

SBF Family Involved in $100 Million FTX Scandal: Legal Troubles Ahead


Sam “SBF” Bankman-Fried, the founder of collapsed crypto exchange FTX, is at the center of a $100 million financial scandal. Leaked emails reveal that SBF’s family was involved in misusing company assets to fund political donations, raising significant legal questions.

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Revelations from emails

According to emails that The Wall Street Journal (WSJ) has obtainedthe SBF family managed more than $100 million in political contributions. The funds, which were allegedly illegally sourced from FTX customer accounts and intended to influence the 2022 election, have resulted in multiple lawsuits.

Involvement of family members

The emails show that SBF’s father, Joe Bankman, was directly involved in advising on financial strategies related to political donations. SBF’s mother, Barbara Fried, and his brother, Gabriel Bankman-Fried, allegedly directed the money to various political entities and causes. Barbara, a co-founder of the super PAC Mind the Gap, allegedly funneled money to progressive groups and initiatives, while Gabriel donated to pandemic prevention efforts.

Legal consequences

David Mason, former chairman of the Federal Election Commission, noted that Joe Bankman’s involvement could lead to direct legal liability under campaign finance laws. Despite the evidence, a spokesman for Joe Bankman stated that he had “no knowledge of any alleged violations of campaign finance laws.”

Former FTX director convicted

On May 28, former FTX Digital Markets co-CEO Ryan Salame was sentenced to 7.5 years in prison after pleading guilty to felonies. Salame pleaded guilty to conspiracy to operate an unlicensed money transmission business and to committing campaign finance fraud. His sentencing marks a new chapter in the FTX sagaafter former executives Caroline Ellison and Nishad Singh pleaded guilty and are awaiting sentencing.

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