Blockchain News

Democrats to Reportedly Return Over $1M of SBF’s Funding to FTX Victims

After the entrepreneur was charged with eight counts of financial crimes, three democratic committees, the DNC, the DSCC, and the DCCC, pledged to return SBF’s political donations.

Following the arrest of former FTX CEO Sam Bankman-Fried (SBF), three prominent Democratic organizations are said to have decided to return over $1 million to investors who lost money due to misappropriation.

After the entrepreneur was charged with eight counts of financial crimes, the Democratic National Committee (DNC), Democratic Senatorial Campaign Committee (DSCC), and Democratic Congressional Campaign Committee (DCCC) pledged on December 16 to return SBF’s political donations.

When speaking to the Verge, a DNC spokesperson reportedly confirmed this decision:

“Given the allegations around potential campaign finance violations by Bankman-Fried, we are setting aside funds in order to return the $815,000 in contributions since 2020. We will return as soon as we receive proper direction in the legal proceedings.”

According to the Washington Post, the other two Committees, the DSCC and DCCC, have also pledged to set aside $103,000 and $250,000, respectively. SBF has previously admitted to being a “significant donor” to both political parties.

Earlier this year, SBF revealed in a podcast his plans to spend up to $1 billion to influence presidential election campaigns in 2024.

Karine Jean-Pierre, White House press secretary, refused to answer questions about the return of SBF’s previous donations to the party.

When asked, she stated, “I’m covered here by the Hatch Act,” which prohibits civil service employees, particularly those from federal agencies, from engaging in certain forms of political activity.

With $5.2 million in donations, Bankman was the second-largest “CEO contributor” to Biden’s 2020 presidential campaign.

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