Former SEC Chair Wants Investigation of SBF Political Donations

A former chairman of the United States Securities and Exchange Commission (SEC) has urged prosecutors to further investigate the political donations made by convicted FTX founder Sam Bankman Fried.

Following the conviction of former FTX CEO Sam Bankman-Fried, questions have emerged about whether prosecutors should follow up on his political campaign financing efforts. Recall that at the peak of his glory, SBF had donated up to $100 million to electoral candidates and even nursed the idea of becoming America’s president one day.

However, his recent conviction means he faces potentially 115 years in prison, a sentence that may be further exacerbated if he is found guilty of committing electoral fraud through his donations. Thus, the questions revolve around whether prosecutors should bring a second case against the disgraced FTX CEO or let him deal with the current punishment.

Weighing in on the subject, former SEC Chair Jay Clayton told CNBC in a recent interview that he wants authorities to investigate Sam Bankman-Fried’s political campaign financing. While not canvassing for additional punishment, the former SEC Chair emphasized that “the American people should see what happened here.”

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Jay Clayton described SBF’s electoral involvement as “one of the largest campaign finance problems in history,” suggesting that its high-profile nature means prosecutors should pursue the case. He added, “The facts of what happened here ought to be on the table because Sam was not the only one participating in this campaign finance scheme.” 

SBF’s Political Involvement Raises Questions on Election Integrity

Speaking further, former SEC Chair Jay Clayton argued that SBF’s political involvement must be investigated as it borders on “election integrity.” According to Clayton, prosecutors should seize the opportunity that people are paying attention to highlight the bounds of what is permissible or not with campaign financing.

“It is something that the American people should see what happened here, [and] see what is legal and illegal. [Prosecutors should] take the opportunity that people are paying attention to show what is permissible and what is not permissible,” He told the CNBC crew.

“Should the prosecution bring a second case against former FTX CEO Sam Bankman-Fried on campaign finance violations?” @andrewrsorkin asks Fmr. SEC Chair Jay Clayton: pic.twitter.com/OKNVUxHrpK

— Squawk Box (@SquawkCNBC) November 3, 2023

As previously reported by The Crypto Basic, Sam Bankman-Fried’s sentencing on the first set of charges is scheduled for March 28, 2024. However, the former FTX CEO will also appear in court in March to face a different pair of allegations related to bank fraud conspiracy and foreign bribery. 

A third case of electoral fraud, as the former SEC Chair suggested, will only compound Sam Bankman-Fried’s woes in what has already been a swift fall from glory. Just over a year ago, SBF was the poster child of the cryptocurrency industry. Fast forward to the present, the former FTX CEO has now been convicted and faces the prospect of spending decades, if not a lifetime, behind bars.