The owner of the bankrupted cryptocurrency exchange FTX, Sam Bankman-Fried reportedly gave enormous financial backing to Democrat candidates and radical-leftist groups leading up to the 2022 midterm election, right before his company collapsed amidst a massive scandal.
The former billionaire who has according to The Daily Wire managed to lose a fortune in excess of $15.8 billion in under 48 hours was the second largest donor to Democrat campaigns in the 22′ election cycle, second only to the World Economic Forum’s George Soros. Bankman-Fried gave at least $38 million as reported by Fox News.
After FTX, headquartered in the Bahamas, suffered what Fox News called a “full-fledged liquidity crisis” resulting in the firm declaring bankruptcy Friday, Bloomberg’s Billionaire’s Index estimated that the major leftist donor has “no material wealth.”
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
“I’m sorry. That’s the biggest thing,” Bankman-Fried tweeted Thursday morning. “1)I f—ed up, and should have done better.” It was just the beginning of a massive Twitter thread in which he insisted that the issue was only impacting users of FTX International and not US users.
He continued, “I also should have been communicating more very recently. Transparently–my hands were tied during the duration of the possible Binance deal; I wasn’t particularly allowed to say much publicly. But of course it’s on me that we ended up there in the first place.” He appeared to claim sole responsibility for the collapse writing,
“The full story here is one I’m still fleshing out every detail of, but as a very high level, I f****d up twice. The first time, a poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was way lower.”
Bankman-Fried also appeared to contradict what reports would later reveal as a massive transfer of $10 billion of assets to Alameda Research reported Sunday by Reuters. He wrote, “Alameda Research is winding down trading. They aren’t doing any of the weird things that I see on Twitter–and nothing large at all. And one way or another, soon they won’t be trading on FTX anymore.”
Politico wrote that Bankman-Fried was one of the top resources for Democrats when lawmakers began seeking methods to regulate cryptocurrencies because of “his willingness to write multimillion-dollar checks to boost Democrats.” The former billionaire also said earlier in 2022 that he was making ready to pump anywhere between $100 million and $1 billion on the upcoming 2024 presidential election in hefty bid to keep Democrats in the White House.
Bankman-Fried was in the midst of a massive bail-out merger from Binance, until the competing Cryptocurrency exchange backed out abruptly citing “corporate due diligence.”
In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.
— Binance (@binance) November 9, 2022
As regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization, the ecosystem will grow stronger.
— Binance (@binance) November 9, 2022
“As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com,” Binance wrote in a statement.
They added, “In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”
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Author: Matthew Holloway
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