Ill-Gotten Gains: Crypto Kingpin’s Donations Put Democrats in the Hot Seat

The embattled crypto billionaire Sam Bankman-Fried, who is now under federal investigation and suspected of defrauding his investors, spent the election season shelling out cash to Democrats: $865,000 to the Democratic National Committee, $1 million to Sen. Chuck Schumer’s (D., N.Y.) Senate Majority PAC, and $6 million to the House Majority PAC.

With each passing day, it looks more and more like FTX’s customers won’t get their money back. But Democrats won’t say whether they’re going to hang on to the cash. The Democratic National Committee, Senate Majority PAC, and House Majority PAC did not respond to requests for comment about Bankman-Fried’s donations. The White House has also not weighed in on Bankman-Fried’s $5 million contribution to Future Forward PAC, which spent $74 million in support of Biden in 2020.

The White House’s connections to Bankman-Fried could draw the interest of House Republicans should the GOP win control of the House. The Washington Free Beacon reported Bankman-Fried and his team of lobbyists at FTX met with top Biden White House officials during visits on April 22, May 12, and May 13.

Bankman-Fried gave roughly $40 million to Democrats during the 2022 election cycle, making him one of the biggest donors to a fundraising juggernaut that helped stave off a Republican wave in the midterms. While the 30-year-old entrepreneur contributed to a handful of Republicans, the lion’s share of his spending has gone to Democrats. He contributed $250,000 to the Democratic Congressional Campaign Committee, $66,500 to the Democratic Senatorial Campaign Committee, and $400,000 to the Democratic Grassroots Victory Fund.

Bankman-Fried dangled the prospect earlier this year of giving up to $1 billion to Democrats in the midterms.

Sen. Dick Durbin (D., Ill.) and Rep. Chuy Garcia (D., Ill.) said their campaigns will direct Bankman-Fried’s $2,900 campaign contribution to charity, the Daily Beast reported. Rep. Dave Schweikert, one of a handful of GOP beneficiaries, said he would return a $2,900 contribution from Bankman-Fried’s top lieutenant Ryan Salame.

When FTX came crashing down this month amid a liquidity crunch, FTX account holders saw their portfolios wiped out. Bankman-Fried is reportedly “under supervision” by authorities in the Bahamas, where he lives, for potential fraud charges. Federal agencies are investigating whether Bankman-Fried misused billions of dollars in customer deposits at FTX to prop up a hedge fund he controlled.

While Bankman-Fried garnered widespread media praise in recent years as the fresh face of the crypto