SBF Prosecutors Look into Funds Donated to Prominent US Democrats

FThe prosecutors inquiring about Sam Bankman-Fried (SBF) – the collapsed FTX founder – have reportedly contacted the prominent Democratic-Party members. They intended to seek information regarding the political donations that the entrepreneur made. The prosecutors communicated with Congressman Hakeem Jeffries and the Democratic members associated with the Democratic Congressional Campaign Committee (DCCC) for the information that could be helpful in their latest investigations, as per the report published by the New York Times.

Related: SBF Files a New Bail Application in the Bahamas Supreme Court

Prosecutors of SBF Reportedly Interact with US Democrats to Delve into His Political Donations

The office of the United States attorney for the Southern District of New York issued an email for Marc Elias (the lawyer for the Democratic Party elections) asking for particulars on donations that SBF made. Analogous emails were delivered to the rest of the Republican and Democratic parties also. On the 12th of December, the Royal Bahamas police detained the FTX founder as a result of the request made by the US authorities.

This event took place a day before the supposed testimony of SBF before Congress. Several charges were leveled against him dealing with the election and financial fraud based on the alleged draining of up to $1.8B amount in the client funds. The continuous inquiries covering the political donations of Bankman-Fried have allured much attention as he was the 2nd-biggest individual responsible for offering huge sums equaling approximately $39.8 million.

On the 17th of December 2022, 3 top Democratic communities – including the CCC, the Democratic Senatorial Campaign Committee, and the DNC – reportedly ascertained to return a cumulative $1 million to FTX investors. These funds were associated with the donations of Bankman-Fried to the political parties for which he took the consumers’ funds. Furthermore, the respective decision was validated by a DNC spokesperson.

Democratic Groups to Hand Back $1 Million to FTX Clients

The members of the Democratic group contemplated the violations committed by the former CEO of FTX and made the decision. Furthermore, the spokesperson added that in the end, they concluded that the funds should be given back to the FTX consumers who have been victimized by the exchange and its management.

In this way, nearly $815,000 of contributions of the entrepreneur to be given back to the scammed investors of FTX. The spokesperson also noted that the respective funds will be given after they receive adequate direction through the legal proceedings. The additional sums of $250,000 and $103,000 were specified by DCCC and DSCC respectively for the compensation of the clients.