Weeks after the controversial collapse of the crypto derivatives exchange FTX and the resignation of its CEO Sam Bankman-Fried, U.S. politicians, the majority of them Democrats, have returned or re-gifted the donations they received from the tarnished crypto empire founder.
The FTX fiasco is not yet over. When Bankman-Fried’s business came crashing down and left on its trails a wake of destruction, institutional and retail investors were not the only parties impacted. The controversial collapse marred the Democrats, who are known to greatly benefit from Bankman-Fried’s munificence.
However, very recently, the disgraced FTX founder revealed that he gave equally significant amounts of money to both Democrats and Republicans. “I donated to both parties. I donated about the same amount to both parties,” Bankman-Fried told crypto commentator and citizen journalist Tiffany Fong.
“All my Republican donations were dark,” Bankman-Fried said, referring to the kind of political donations that are not disclosed to the public. “The reason was not for regulatory reasons, it’s because reporters freak the fuck out if you donate to Republicans. They’re all super liberal, and I didn’t want to have that fight,” he added.
Bankman-Fried’s revelation came a few weeks after FTX started its bankruptcy proceedings and as the political battle over the crypto empire’s implosion slowly shapes up in Washington. Amid all these, interesting information surfaced online, revealing that some Democrats have returned or re-donated the funds they received from the FTX founder.
OpenSecrets.org, a nonprofit that monitors U.S. campaign finance and lobbying, shared a public spreadsheet showing Bankman-Fried’s donations and the returned or re-donated contributions of the politicians who previously accepted them. The data also revealed that out of the $46.5 million donation to the Democrats, politicians have returned only 3% of the fund, representing $1.2 million of the entire contribution by Bankman-Fried.
Among the Democrat politicians who have returned or re-donated their received donations from Bankman-Fried include Democratic Senators Dick Durbin and Kirsten Gillibrand as well as Rep. Jesus “Chuy” Garcia.
Interestingly, among the politicians who have received Bankman-Fried’s donations but haven’t returned or re-donated the money are House Speaker Nancy Pelosi and Senator Mitt Romney. Senator Bob Menedez, known for his advocacy for stronger investor protections following the FTX collapse, hasn’t returned the former FTX CEO’s donations yet.
Other politicians who haven’t returned or re-donated the donations yet are the sponsor of the Digital Commodities Consumer Protection, Senator Debbie Stabenow and Senator John Boozman. Meanwhile, Beto O’Rourke, who received a $1 million donation from Bankman-Fried, returned the funds a week before FTX filed for Chapter 11 bankruptcy protection.
“This contribution was unsolicited and the campaign’s upcoming [Texas Ethics Commission] report will show that it was returned on November 4, prior to the news stories that would later come out about the donor,” the politician’s spokesperson told the Texas Tribune.
The complete list of recipients of Bankman-Fried’s donations is available on OpenSecrets.
