SBF Family Involved in $100 Million FTX Scandal: Legal Troubles Ahead – BLOX

Sam “SBF” Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, is at the center of a $100 million financial scandal. Leaked emails reveal that the SBF family was involved in misusing company resources to fund political donations, raising major legal questions.

Email Disclosure

According to the emails that I got the Wall Street Journal (WSJ).The SBF family managed over $100 million in political contributions. The funds, which allegedly came illegally from FTX client assets and were intended to influence the 2022 elections, have led to multiple lawsuits.

Involving family members

Emails show that SBF’s father, Joe Bankman, was directly involved in advising on financial strategies related to political donations. SBF’s mother, Barbara Fried, and his brother, Gabriel Bankman Fried, allegedly directed the flow of money to various political entities and causes. Barbara, a co-founder of the super PAC Mind the Gap, allegedly funneled money to progressive groups and initiatives, while Gabriel made donations to pandemic prevention efforts.

Legal consequences

Former Federal Election Commission Chairman David Mason has suggested that Joe Bankman’s involvement could lead to direct legal liability under campaign finance laws. Despite the evidence, a spokesman for Joe Bankman said he was “not aware of any alleged violations of campaign finance law.”

Former FTX Director Convicted

On May 28, former FTX Digital Markets co-CEO Ryan Salameh was sentenced to 7.5 years in prison after pleading guilty to felonies. Salameh pleaded guilty to conspiring to operate an unlicensed money transfer business and committing campaign finance fraud. His conviction marks a new chapter in the FTX saga, following former executives Carolyn Ellison and Nishad Singh, who have also pleaded guilty and are awaiting sentencing.