Democrats to Turn over SBFs donation
After the arrest of “bank run” crypto exchange FTX, 3 democratic committees, including the DCCC, the DSCC and the DNC, have promised to return over $1 million for redistribution among FTX’s users.
According to The Washington Post, Chris Taylor, a spokesperson for the Democratic Congressional Campaign Committee (DCCC), said that the group would set aside $250,000 received from SBF as a political donation. He said “We are waiting for further guidance from the government on what to do with the money based on their legal proceedings.”
Similarly, Democratic Senatorial Campaign Committee (DSCC) and Democratic National Committee (DNC), have pledged to return $103,000 and $815,000 respectively, which once called SBF a “significant donor.”
The former crypto wonder-boy SBF has donated up to $40 million to political candidates and parties. In May 2022, he announced he would donate $100 millions in the upcoming 2024 presidential elections. Also, it was not the first time he spent money on political figures. He spent $5.2 million on Joe Biden’s election campaign in the U.S.
Future Fund is a charity foundation through which FTX has donated over $140 million across the world. FTX contributes 1% of net user fees to the foundation. As per CNBC reports, Federal authorities have charged SBF for misusing $10 billion in customers’ funds. He used the funds for his trading desk, Alameda Research.
SBF’s dream run ends
As per Bloomberg, SBF’s wealth declined to $991 million from $16 billion in a single day, which is around 93% of his entire fortune. He is no longer in the Bloomberg Billionaire Index.
SBF was arrested in the Bahamas and charged for money laundering, conspiracy, securities fraud, wire fraud among other crimes. Further, Chief Magistrate of the Bahamas Joyann Ferguson-Pratt denied him bail. SBF’s extradition hearing is till February 8.
As the New York Times reported, Damian Williams, U.S. Attorney for the Southern District of New York remarked: “I think it’s fair to say that by anyone’s lights, this is one of the biggest financial frauds in American history.”
The total crypto market capitalization just before the FTX crash was over $1 trillion. It sharply declined to $780 billion in a couple of weeks after the crypto exchange filed for bankruptcy under Chapter 11 on November 11, 2022. Started in February 2019, the company achieved a valuation of $32 billion merely in three years. However, over a period of time, its position slipped to 42nd rank from the top third among the crypto derivatives exchanges.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/12/17/democratic-committees-promise-to-return-sbfs-donation-to-ftx-victims/