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Is SBF’s Family Involved in a $100M Political Donation Scheme?


New accusations have appeared concerning Sam Bankman Fried’s (SBF) family in a $100 million political contribution fraud case. These allegations could have very serious legal implications for the suspect. The Wall Street Journal has published the emails that shed light on the family’s engagement in these contributions.

SBF’s Family Faces $100M Political Fund Accusations

The prosecutors say Bankman-Fried masterminded a massive influence operation ahead of the 2022 polls. They assert that he spent more than $100 million of the FTX client’s money obtained through fraud on political contributions. As mentioned above, the newly emerged emails show that SBF’s parents and brother were equally involved in the plan.

Joe Bankman, a Stanford law professor, is said to have helped the couple with financial planning regarding these donations. As stated in WSJ, emails prove his direct participation in the process, meaning he was aware of the violation of the law regarding straw donors. Barbara Fried, the co-founder of the progressive alliances committee known as Mind the Gap, was accused of funneling money to the progressive entities.

Concurrently, Gabriel Bankman-Fried of FTX directed his contributions towards the fight against pandemics. This strategy was an attempt to spread funding across all political divides. It aimed to support specific causes without considering the source of the funds.

David Mason, ex-chairman of the Federal Election Commission, said something about it. He said the emails provided “strong evidence” that Joe Bankman was involved in the scheme. These allegations could lead to legal consequences for the individuals/entities concerned.

Joe Bankman’s spokesperson said that he was unaware of the campaign finance violations mentioned, but this is far from the truth, given the emails that have come to light. The political donation scheme was not limited to the Bankman-Fried family.

Two defendants, Ryan Salame and Nishad Singh, former executives of FTX, have entered a guilty plea in the case. Salame steered the contributions to the Republican candidates to ensure that the funds could not be traced back to Bankman-Fried, while Singh used the money for liberal candidates that were not rightfully his.

Ryan Salame Gets 7.5 Years for Fraud

Ryan Salame was convicted and received a 7.5-year prison term when he pleaded guilty to the felony charges on 28 May. U.S. District Court Judge Lewis Kaplan passed the sentence on. Salame’s charges were conspiracy to engage in the business of money transmission without a license and campaign finance fraud.

Salame’s sentencing is the latest development in the FTX case. It adds to the existing events. That’s after other former FTX executives, Caroline Ellison and Nishad Singh, who have also pled guilty, have yet to be sentenced. These proceedings show the significant legal concerns encountered by the people involved in the donation scheme.

The prosecution claimed that the family had a significant role in the scheme. They coordinated and oversaw the contributions to political parties and campaigns. This effort aimed to increase their power while concealing the source of the given donations.

Joe Bankman Denies Knowledge of the Scheme

The accusations leveled at SBF’s family have caused a lot of controversy. There are legal consequences that include hefty fines and other punitive measures that can be inflicted. The fact that Joe Bankman was allegedly involved in advising the strategies that led to financial practices also complicates the whole issue.

Barbara Fried’s Mind the Gap PAC supports liberal causes; hence, the funds are directed toward such causes. Bankman-Fried’s main activity was dedicated to preventing the spread of the coronavirus through donations. Such coordinated activities prompt questions about the family’s overall goals and plans.

This is evident from David Mason’s remarks, which describe the gravity of the situation. He stressed that the case against Joe Bankman is quite strong, meaning that if the accusations are accurate, Joe Bankman could be personally liable under the campaign finance laws.

However, Joe Bankman’s associate still believes he is innocent despite the increasing cases against him. They claimed he did not know about any unlawful activities concerning campaign finance. This defense is relatively far from the emails and other materials provided to the court.

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.


The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Adarsh Singh
Adarsh Singh
Adarsh ​​Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.

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