Two weeks prior to declaring bankruptcy, FTX US reportedly gave $1 million to a Super PAC. A Senate Leadership Fund affiliated with the Republicans, one of the top spenders in the mid-term elections, and multiple other donations were made by the company’s executives.
A recent filing with the Federal Election Committee first mentioned the donation to the Senate Leadership Fund.
On October 27, FTX US gave $1 million to the Mitch McConnell SPAC, a notable date because just a few weeks later, the company filed for chapter 11 bankruptcy on November 11. Additionally, FTX US donated $750 000 to the Congressional Leadership Fund.
In recent weeks, political contributions from FTX executives have come under increasing inspection, as allegations first surfaced that SBF “bought” influence in Washington to avoid regulatory scrutiny.
When FTX collapsed, US lawmakers suggested that Sam Bankman-Fried may have worked with his SEC’s Gary Gensler to gain monopoly rights in the space.
The same representative was recently revealed to have been part of a bipartisan team trying to stop a government investigation into FTX.
Former FTX CEO Sam Bankam-Fried is also known as the second largest contributor to Democrats in the midterm elections, giving nearly $40 billion.
Other executives at his company are also prominent political donors with different personalities, including Ryan Salme, who donated more than $20 million, primarily to Republican candidates.
FTX executives’ political contributions became increasingly controversial after it was revealed that the company had diverted billions of dollars worth of users’ wealth by lending them to Alameda Research.
Things got even worse after it was reported that Alameda lent Sam Bankman Fried over $3 billion for personal use.
The controversy surrounding FTX’s bankruptcy continued to escalate during bankruptcy proceedings. Court filings allege Bahamian regulators were behind the hack shortly after Chapter 11 was filed.
Also, John J. Ray, the current CEO of FTX, called the company’s lack of an internal accountant “the worst failure of corporate governance.”
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Source: Cryptocurrency - investing.com
