Fraudster steered contributions to Josh Gottheimer, Cory Booker, Frank Pallone, and Robert Menendez, Jr., the son of indicted spy Senator Bob Menendez.
Former cryptocurrency mogul Sam Bankman-Fried has been sentenced to 25 years in prison for what prosecutors have described as “massive” financial crimes.
The sentencing, handed down by U.S. District Judge Lewis Kaplan, includes an order for Bankman-Fried to pay more than $11 billion in restitution.
Bankman-Fried, the co-founder of crypto exchange FTX and investment fund Alameda Research, faced charges related to wire fraud, conspiracy to commit fraud, and conspiracy to commit money laundering. Prosecutors accused him of misappropriating FTX customer funds to fund lavish personal expenses, investments, and political contributions.
Among the contributions highlighted were those made to several New Jersey congressmen, including Senator Cory Booker, plus Representatives Andy Kim, Josh Gottheimer and Frank Pallone, totaling over $30,000 according to Federal Election Commission records.
A super PAC funded by Bankman-Fried made $250,000 worth of independent expenditures supporting US Representative Robert J. Menendez Jr., the son of New Jersey Senator Bob Menendez.
During the sentencing, Judge Kaplan criticized Bankman-Fried for failing to take responsibility for his actions, noting a lack of remorse for the crimes committed.
Bankman-Fried’s defense argued for a shorter sentence, citing his young age and autism diagnosis but prosecutors pushed for a longer 40-year term, calling the case one of the biggest financial crimes in history.
The sentencing also brings attention to the connections between Bankman-Fried and various political figures, raising questions about the influence of campaign contributions on policy decisions.
Concerns have been voiced about the integrity of the legal process following the government’s decision to drop some charges against Bankman-Fried.
Bankman-Fried contributed more than $70 million to election campaigns in less than 18 months, placing him among the nation’s top political donors ahead of the 2022 midterm elections.
The U.S. government has decided to drop six charges against 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.
Although federal election receipts show that Bankman-Fried donated almost exclusively to Democrats, he claimed on a November phone call with YouTuber Tiffany Fong that he donated an equal amount to Republicans and Democrats.
“All my Republican donations were dark,” he said, referring to political donations that are not publicly disclosed in FEC filings. “The reason was not for regulatory reasons, it’s because reporters freak the fuck out if you donate to Republicans. They’re all super liberal, and I didn’t want to have that fight.”
The fallout from Bankman-Fried’s actions has reverberated through the cryptocurrency industry, with calls for stronger oversight and regulation.
The sentencing serves as a stark reminder of the consequences of financial wrongdoing but there is no evidence that politicians will face accountability for their complicity in the financial sector corruption.
Gottheimer was among a bipartisan group of eight federal lawmakers who tried to slow down an investigation by the Securities and Exchange Commission into the collapsed cryptocurrency exchange FTX.
The congressmen weighed in on the Securities and Exchange Commission’s investigation into cryptocurrency and blockchain companies by demanding the regulatory agency to “provide us with a better understanding of the SEC’s authority” instead of passing laws to regulate the corrupt industry.
The case highlights broader issues surrounding money in politics and the effectiveness of regulatory frameworks for financial institutions.
It underscores the importance of transparency and ethical considerations in political fundraising, particularly concerning contributions from individuals with questionable financial practices.