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Once the world’s third-largest crypto exchange FTX collapsed and filed for bankruptcy on November 11, 2022. Recent investigations revealed some shocking information regarding the debacle; days before the filing, co-CEO Ryan Salame gave a $500,000 check to the Republican Governors Association, an important campaign arm tasked with electing GOP executives across the country.
Donations
The donation can not be considered a radical move on his part. At the time, Salame was coming out as a prolific GOP donor, giving more than $23 million to federal candidates & PACs in 2021 and 2022; this information is in accordance with FEC records. But the FTX fallout & SBF’s arrest attracted stricter scrutiny to be placed upon campaign contributions that came from any leaders of the bankrupt crypto exchange.
Many Democratic candidates have pledged to return the amount in full. The RGA had seemingly kept the funds received from Salame. A spokesperson from the group refused to reveal the specifics of the donation, as the co-CEO is not indicted.
Was the Donation Helpful
According to the IRS, Salame’s $500,000 donation was a small part of a $28.6 million package the association managed to bring in over a period of three months in 2022. The money and a seven-figure donation from GOP mega-donation practically fuelled the punch to claim the executive branch in numerous states on November 8, 2022. Ultimately causing Democrats to flip three governorships in their favor. All due to this cash advantage.
According to the IRS, Democratic Governors Association raised nearly $40.2 million in the fourth quarter of 2022. Veterans of the gubernatorial campaign pointed out the rare instance where the party donors shifted to DGA.
Generally, majority donors tend to focus on national issues or presidential politics and seldom on state issues, said former DGA executive director Colm O’Camartun, adding to the gubernatorial race swings in states like Wisconsin and Pennsylvania creating a valid argument for majority Democrat’s donors “Starry eyes donors have been used to bring with Nancy on Nantucket but are now warming to Democratic governors.”
What does this imply?
This high cash influx hints at a growing effort by groups focusing on states. A spokesperson from the Concord Fund argued that even if the group majorly supported Judicial Crisis Network, they were also involved in the state court issue for more than a decade.
Although a limit is set for federal and state-level campaigns, RGA is free to accept unlimited donations. The funding haul in 2022 includes some conservative donor dynasties. Like the Las Vegas Sands Corporation, giving $3.79 million; Suzanne DeVos, $300,000; Illinois Governor J.B. Pritzker, $27 million; and billionaire Stephen Mandel giving $1,000,000.
The DGA claimed not to receive anything from FTX in 2022.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
