Leaked emails obtained by The Wall Street Journal point towards SBF’s family playing a central role in a $100 million financial scandal involving misused company assets for political donations.
By Bena Ilyas
Edited by Julia Sakovich
Updated
2 mins read
New leaks expose Sam Bankman-Fried (SBF), founder of cryptocurrency exchange FTX, in a potential $100 million scandal. Emails obtained by The Wall Street Journal (WSJ) point towards SBF’s family playing a central role in a $100 million financial scandal involving misused company assets for political donations.
Leaked emails expose a scheme where FTX customer funds were allegedly diverted to influence the 2022 elections. This revelation has triggered legal proceedings, raising questions about the family’s involvement and potential violations of campaign finance laws.
The leaked messages detail the significant role of SBF’s father Joseph Bankman in advising on financial strategies for political contributions. The WSJ reports that the emails suggest Joe Bankman may have been directly involved in these illicit funding operations.
Further investigation reveals the alleged participation of SBF’s mother, Barbara Fried, and brother, Gabriel Bankman-Fried. Barbara, the co-founder of the super PAC Mind the Gap, is said to have directed funds towards progressive causes. Gabriel, on the other hand, is suspected of donating towards pandemic prevention efforts.
David Mason, a former chairman of the Federal Election Commission (FEC), emphasizes the potential legal ramifications for Joe Bankman. Mason warns that the emails contain “strong evidence” suggesting Joe Bankman may have knowledge of the “illegal straw-donor scheme”.
Despite the mounting evidence, a spokesperson for Joe Bankman maintains his innocence, stating that he has “no knowledge of any alleged campaign finance violations”.
This recent development comes on the heels of Ryan Salame’s sentencing on May 28. The former FTX Digital Markets co-CEO received a 7.5-year prison sentence after pleading guilty to felony charges. These charges included conspiracy to operate an unlicensed money-transmitting business and engaging in campaign finance fraud.
Salame’s sentencing marks another significant chapter in the ongoing FTX saga. It follows the guilty pleas of former executives Caroline Ellison and Nishad Singh, who are currently awaiting sentencing.
The FTX scandal continues to unfold, with the latest revelations raising serious concerns about the exchange’s past practices and the potential legal consequences for those involved. As investigations progress, the full extent of the alleged financial misconduct and its impact on the crypto industry will likely become clearer.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
