The U.S. government has decided to drop six charges against Sam Bankman-Fried, the founder of crypto exchange FTX, who donated $100 million in stolen customer funds to various politicians, including several New Jersey Democrats.
The lack of a clear public explanation for this decision has only fueled suspicions, leaving many to question the integrity of the legal process.
The decision has also sparked outrage and concerns about the accountability of both financial figures and political actors.
Presidential contender Robert F. Kennedy Jr. expressed shock over the dropped charges, emphasizing the potential normalization of corruption within the U.S. government.
One aspect drawing attention is Bankman-Fried’s substantial political contributions, particularly the $5.2 million donation he made to Joe Biden’s presidential campaign in 2020.
This raises questions not only about the alleged misuse of funds but also about the influence such contributions may have on the political landscape and whether the White House might have influenced Damian Williams, the United States Attorney for the Southern District of New York, who dropped the second round of prosecution.
The connections between Bankman-Fried and New Jersey congressmen who accepted campaign contributions from him is also a topic of concern.
Progressive Democrat Lisa McCormick claims that these politicians, including Rep. Josh Gottheimer, may have played a role in the collapse of Silicon Valley Bank (SVB).
McCormick criticized Gottheimer for weakening regulations on banks, potentially putting depositors and the broader economy at risk.
“Only months before the FTX cryptocurrency exchange crashed into reality, resulting in criminal charges against funny-money founder Sam Bankman-Fried and a multi-billion dollar bankruptcy, three New Jersey congressman greedily accepted campaign contributions from more than $70 million distributed by executives of the company,” said McCormick, more than a year ago.
“While FTX was handing out cash, Josh Gottheimer collected $11,600, Cory Booker received $11,400, and Frank Pallone got a combined total of $7900, $2900 directly plus $5000 directed to his Shore PAC, according to records from the Federal Election Commission,” said McCormick, who posted a petition online asking residents to join her call for the politicians to divest the dirty money.
It subsequently came to light that a super PAC funded by Bankman-Freid made $250,000 worth of independent expenditures in support of the son of New Jersey’s corrupt US Senator Bob Menendez, US Representative Robert J. Menendez Jr., who was a virtually uncontested candidate in New Jersey’s 8th Congressional District, where he defeated Republican nominee Marcos Arroyo by three to one.
The collapse of SVB, exempted from some regulatory requirements by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), adds another layer to the controversy. The act, signed into law by President Donald Trump in May 2018, raised the threshold for banks considered “systemically important,” subjecting them to additional regulatory requirements.
New Jersey congressmen got cash from crypto con artist Sam Bankman-Fried
Gottheimer tried to scuttle SEC probe of crypto crook donor Sam Bankman-Fried
McCormick’s petition tells Menendez, Gottheimer, Booker & Pallone give money to good
Cryptosuper PAC spent $250,000 on corrupt US Senator’s son in NJ’s 8th District
McCormick’s claims against Gottheimer highlight broader issues surrounding the role of money in politics and the effectiveness of regulatory frameworks for financial institutions in the United States. It raises questions about the ethical considerations of politicians accepting significant contributions from individuals with questionable financial practices.
Bankman-Fried was convicted on November 2, 2023, and the government’s decision to drop charges conflicted with statements made by prosecutors.
“Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the King of Crypto – but while the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time,” said Williams. “This case has always been about lying, cheating, and stealing, and we have no patience for it.”
“This case undermines the public’s trust in our legal, financial, and political systems,” said McCormick.