In 2020, the second-biggest donor to Joe Biden’s presidential campaign was Sam Bankman-Fried, the CEO of the cryptocurrency derivatives platform FTX. In the 2022 midterm elections, only George Soros gave more to Democratic candidates. On Nov. 11, FTX, which had been valued at $40 billion in March, declared bankruptcy. On Dec. 13, the U.S. attorney for the Southern District of New York indicted Bankman-Fried on charges including wire fraud, conspiracy to defraud investors, lenders, and the United States, conspiracy to violate campaign finance laws, and conspiracy to commit commodities and securities fraud.
FTX declared Chapter 11 bankruptcy after a run on the crypto exchange prompted by questions from rival Binance and revelations about its relationship with Alameda Research. Now he’s under arrest in the Bahamas and could face extradition.
FTX went on a $5 billion spending binge in the year before its collapse, buying up businesses and investments that are likely now worth only a fraction of that amount, its new CEO has told lawmakers.
Lavish parties. Hired guns. Huge campaign contributions. Inside the political influence machine that took the now-disgraced CEO of the failed crypto exchange FTX all the way to the White House.
FTX-backed crypto trading firm Alameda owes $55,319 to Jimmy Buffett s Margaritaville beach resort in the Bahamas, the fourth-largest debt for the company founded by Sam Bankman-Fried.