Democrats to Return 2.2% of $45.2 Million Donation Made by FTX’s Co-Founder Sam Bankman-Fried
After disgraced FTX co-founder Sam Bankman-Fried (SBF) donated $5.2 million to Joe Biden’s 2020 campaign and more than $40 million to Democrats ahead of the US midterm elections, three major Democratic organizations plan to return 2.2% funds, or $1 million, to a now defunct crypto exchange. Out of a total of $1 million, the Democratic National Committee (DNC) is providing $815,000 for the return of bankrupt properties.
Democrats to return just 2.2% of funds donated by disgraced FTX co-founder to now-defunct crypto exchange
Before his arrest, Sam Bankman-Fried (SBF) is known to have made significant contributions to the Democratic Party. Actually, estimates indicate that one in three members of Congress received direct input from the SBF and its inner circle. Since 2020, the SBF has donated significant amounts of money to Democrats, and it has claimed to have made undisclosed donations to Republican candidates. The SBF made the second largest monetary donation to the Joe Biden campaign in 2020, providing $5.2 million to the incumbent.
At a press briefing on December 13, 2022, a reporter asked White House press secretary Karine Jean-Pierre, if the administration returns the funds. Jean-Pierre declined to comment, citing Hatch’s law. “Anything related to political donations, from here I should direct you to the DNC,” said Jean-Pierre. The SBF was the second-largest Democratic donor under George Soros, providing significant campaign funds for Joe Biden in addition to other contributions leading up to the US midterm elections.
According to reports from the Federal Election Commission (FEC) and data from opensecrets.org, the SBF has donated at least $40 million to the Democrats. Tesla CEO Elon Musk has suggested that the SBF could have given the Democrats significantly more over the years, perhaps even up to $1 billion. The bankrupt estate is now asking the company to return $45.2 million given to Democratic candidates, political action committees and Biden so it can pay off creditors. The three major Democratic organizations plan to return $1 million of the funds, roughly 2.2% of the total SBF contribution of $45.2 million.
The Democratic Congressional Campaign Committee and the Democratic Senatorial Campaign Committee will come back $353,000, according to various news outlets. The DNC also plans to return $815,000 to bankrupt FTX. “Given allegations of potential campaign finance violations by Bankman-Fried, we are committing funds to return $815,000 in contributions from 2020,” a DNC spokesman said. said. “We will refund the funds as soon as we receive proper direction in the legal proceedings.”
With $1 million, or 2.2%, returned to the bankruptcy estate, there is still $44.2 million that the SBF gave to the GAC to the party and candidates. Notably, the Democratic parties did not offer to return the entire balance, and some US officials took it upon themselves donate money to charity. One concern is that the funds could have been fraudulently obtained, which can be seen as rewarding and legitimizing such behavior.
Moreover, the return of only 2.2% of the funds back to the bankrupt mass can be seen as a political, not a moral calculation. It is unclear whether FTX’s debtors will be satisfied with receiving just 2.2% of the funds, or whether they will seek to recover most of the political donations made by Bankman-Fried.
What do you think the Democratic Party and its candidates will do with the remaining $44.2 million in Sam Bankman-Freed’s donations? Share your thoughts in the comments section below.
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