February 5, 2023

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Ftx and those 73 million for parties. Cryptocurrency scandal hits US politics

It is the story of lobbyists and businessmen, clumsy attempts at influence and unfulfillable promises, that connects one of the most important cryptocurrency exchanges in the world (Ftx) and American politics. A story that cuts sides, because a business can’t have flags at certain levels, and it’s always bipartisan. A story revealed so far of $73 million (possibly stolen from stock exchange agents) donated to Democrats and Republicans. 73 million which can now be subject to a refund request.

The scandal touches American politics

The brief but intense courtship between Washington and Ftx, in light of The scandal that hit the platformsomewhat like a cleaver on some US politicians taking donations, while thousands of users risk losing their savings in what appears to be a historic scam.

just a few months ago, Sam Bankman Fried, the thirty-year-old FTx founder who now risks 115 years in prison, has toured the counting buildings of Washington, determined to get his hands on the 2024 US presidential election. He was willing to donate up to $1 billion, it is reported. Apparently, he didn’t mind being seen as the new George Soros. Along with his closest aides, Ryan Salameh and Nishad Singh, Bankman-Fred has donated $6 million to the House Democrats’ Super Action Committee in recent months. Then 3.5 million dollars to Senate Leadership Fund From Republicans and another 3 million to a fund that supports Senate Democrats.

US election campaign financing

The scheme was straightforward, as has already been seen in the United States: knock on the doors of politicians and parties with millions of dollars to campaign, trying to get the most out of their business, which in this case is cryptocurrency. A sector that remains poorly regulated is the cryptocurrency sector, on which future political decisions will have a decisive impact. And today, in light of the Ftx scandal, it seems to have definitely scraped the terrain ahead.

But the real issue now is what becomes of the $73 million that FTX has already donated to American parties. While there are precedents for forcing political entities to pay back contributions in the event of fraud, in the case of FTX the prospects for recovery are not entirely clear, and will depend on a complex mix of federal and state laws. A key factor in recovery proceedings may be the ruling of the court handling the bankruptcy proceedings: if the court determines that the collapse of FTX involved fraud, almost all donations may be subject to recovery. Otherwise, only donations made within 90 days of the company’s bankruptcy can be refunded.