Bankman-Fried, the previous CEO of cryptocurrency change FTX, was a prolific political donor to particular person lawmakers, official marketing campaign committees and tremendous PACs. Among the recipients of his money had been the Democratic National Committee, the Democratic Senatorial Campaign Committee and the Democratic Congressional Campaign Committee.
In an announcement Friday, DNC spokesman Daniel Wessel mentioned that the group will put aside the $815,000 in contributions it has obtained from Bankman-Fried since 2020. That complete contains donations Bankman-Fried made on to the DNC in addition to the Democratic Grassroots Victory Fund and the Biden Victory Fund, which was a joint fundraising committee accredited by Joe Biden’s presidential marketing campaign, the DNC and state Democratic events.
“We will return as soon as we receive proper direction in the legal proceedings,” Wessel mentioned.
Officials on the DSCC and DCCC – the official marketing campaign arms of Senate and House Democrats, respectively – launched comparable statements.
The DSCC group obtained $103,000 in donations related to Bankman-Fried, and just like the DNC, is making ready to return it as soon as it will get the correct steerage, in response to spokesman David Bergstein. The DCCC is setting apart its $250,000 it received from Bankman-Fried and mentioned it’s “waiting for further guidance from the government on what to do with the money based on their legal proceedings.”
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“House Democrats are committed to preserving the integrity of our democracy and fairness in our campaign finance system,” mentioned the spokesman, Chris Taylor.
There’s rising scrutiny on marketing campaign donations that Bankman-Fried showered on particular person lawmakers, marketing campaign committees and tremendous PACs since FTX collapsed final month and probably erased the holdings of a whole lot of hundreds of shoppers.
Many lawmakers mentioned in response to queries from the Associated Press that they’ll donate Bankman-Fried’s contributions to charity. Some lawmakers, just like the marketing campaign committees, are setting apart the cash till additional authorized steerage.
Some marketing campaign finance specialists advocate setting his marketing campaign money apart, contemplating that these defrauded by him might search to recoup the funds.
“During my most recent campaign I received unsolicited contributions from the company’s principal Samuel Bankman-Fried,” Rep. Jim Costa, D-Calif., mentioned in an e-mailed assertion Friday. “It is my intention to return or donate all the funds received. I will hold the funds in a separate account while we await guidance from legal counsel before proceeding.”