Elon Musk says Sam Bankman-Fried likely donated over $1 billion to support Democratic elections

  • Elon Musk is hinting on his official Twitter account that SBF may have donated over $1 billion to the Democratic election.
  • SBF, the ex-CEO of FTX confirmed that he made undisclosed donations to the Republican Party and donated the same amount to both parties.
  • Republican Senator Ted Cruz also called FTX a “Bernie Maddof fraud that cost investors billions.”

Sam Bankman-Fried, the ex-CEO of the FTX exchange and FTX.US, now bankrupt, allegedly donated the “dark money” to the Democratic Party. Elon Musk took to Twitter to say he thinks the undisclosed number of donations to Democratic parties has likely reached over $1 billion, while only $40 million has been disclosed.

In a recent interview with crypto journalist Tiffany Fung, SBF said that he made an equal donation to both parties. “I donated to both parties. I gave roughly the same amount to both parties,” Bankman-Fried told Tiffany Fung in a phone interview.

“All of my Republican donations were dark,” he said, referring to political donations that aren’t publicly disclosed. “The reason was not for regulatory reasons; it’s because reporters freak out if you donate to Republicans. They’re all super liberal, and I didn’t want to have that fight.

As SBF admits that some of the donations have not been publicly disclosed, it seems likely that there are more undisclosed donations publicly to the Democratic Party.

Undisclosed donations were made possible by the Supreme Court’s decision in the Citizen United case, which allows donors to donate anonymously. Since that decision, more than $1 billion has been invested in federal elections since 2010.

Elon Musk is very vocal on Twitter regarding the SBF affair and the FTX bankruptcy scandal. On November 13, Musk tweeted to imply that SBF is a major contributor to the Democratic Party, so he believes there will be no SEC investigation into the swap.

Republican Senator Ted Cruz also called FTX a “Bernie Maddof fraud that cost investors billions.”

On December 1, the Senate held a hearing to discuss and urge lawmakers to act quickly in establishing a regulatory framework for digital assets. The hearing was arranged by the Senate Agriculture Committee and did not include the main person at the center of this scandal, CEO Sam-Banker Fried. The person invited to testify was Rostin Banham, the chairman of the Commodity Futures Trading Commission (CFTC), an agency that regulates derivatives markets. Benham called for immediate oversight of most crypto markets and “comprehensive market regulation.”

Benham’s testimony is controversial because he had a very close working relationship with Bankman-Fried over the past year. The bill advocated at the hearing was the same one Bankman-Fried had encouraged himself earlier this year, which has been debatable.

Denis Keheller, president of advocacy group Better Markets, argued over the influence SBG allegedly had on the CFTC. It is unclear what access influence Sam-Bankman Fried may have bought into the agency.

“When something like this happens, you usually get an overreaction from elected officials about the need to get tough on the industry,” he says. “Instead, this hearing is to push a bill that has been endorsed and pushed by FTX.”

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