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 election cycle ., three major Democratic organizations plan to return 2.2% of the funds, or $1 million, to the now-defunct crypto exchange. Of the $1 million total, the Democratic National Committee (DNC) is setting aside $815,000 to return to the bankrupt state.
Democrats will return just 2.2% of the funds, donated by the disgraced FTX co-founder, to the now-defunct cryptocurrency exchange
Prior to his arrest, Sam Bankman-Fried (SBF) was known to have made significant contributions to the Democratic Party. In fact, Dear All indicate that one in three members of Congress received a direct contribution from SBF and their inner circle. Since 2020, SBF has donated substantial sums of money to Democrats and has claimed to have made undisclosed donations to Republican candidates. SBF made the second largest monetary donation to Joe Biden’s campaign in 2020, giving the incumbent president $5.2 million.
At a press conference on December 13, 2022, a reporter asked White House press secretary Karine Jean-Pierre whether the administration would return the funds. Jean-Pierre declined to comment, citing the Hatch Act. “Anything that is related to political contributions, I would have to refer it to the DNC from here,” Jean-Pierre said. SBF was the second largest donor to Democrats under George Soros, providing significant funding to Joe Biden’s campaign in addition to other contributions ahead of the US midterm elections.
According to Federal Election Commission (FEC) records and opensecrets.org data, SBF gave Democrats at least $40 million in donations. Tesla CEO Elon Musk has suggested that SBF may have given Democrats much more over the years, possibly as much as $1 billion. The bankrupt state is now asking that the $45.2 million awarded to Democratic candidates, political action committees and Biden be returned to the company so it can pay off creditors. Three major Democratic organizations plan to return $1 million of the funds, representing approximately 2.2% of SBF’s total $45.2 million contribution.
The Democratic Congressional Campaign Committee and the Democratic Senate Campaign Committee return $353,000, according to various news publications. The DNC also plans to return $815,000 to the bankrupt FTX estate. “Given the allegations of potential campaign finance violations by Bankman-Fried, we are setting aside funds to return the $815,000 in contributions since 2020,” a DNC spokesperson said. saying. “We will return the funds as soon as we receive proper direction in the legal proceedings.”
Returning $1 million or 2.2% of the funds to the bankrupt estate still leaves $44.2 million that the SBF gave out to PACs and party candidates. It is notable that the Democratic parties have not offered to return the entire remaining balance, and some American bureaucrats have taken upon themselves to donate the money to charity. One concern is that the funds may have been acquired through fraudulent means, which could be seen as rewarding and legitimizing such behaviour.
Furthermore, returning just 2.2% of the funds to the bankrupt estate could be seen as a political calculation rather than a moral one. It is unclear if FTX debtors will be satisfied with receiving just 2.2% of the funds or if they will seek to claim a larger share 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 donations from Sam Bankman-Fried? Share your thoughts in the comments section below.
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