Regulation
FTX Founder Sam Bankman-Fried’s Family Accused Of $100M Illicit Political Donation
New allegations have surfaced surrounding Sam Bankman-Fried (SBF), the founder of the now-collapsed crypto exchange FTX. SBF’s family is now accused of being involved in a $100 million illicit political donation scheme. Moreover, these claims can lead to intense legal trouble for the accused.
Sam Bankman-Fried’s Family Accused Of Illegal Political Donation
Emails disclosed by The Wall Street Journal (WSJ) have brought to light the extensive involvement of SBF’s family in orchestrating these political contributions. Furthermore, an important point to note is that these donations were allegedly funded by misappropriated FTX customer assets.
Prosecutors asserted that Bankman-Fried orchestrated a sprawling influence campaign ahead of the 2022 election, leveraging stolen customer funds to the tune of over $100 million. The newly revealed emails suggest that key family members played pivotal roles in the scheme. These include SBF’s parents, Joe Bankman and Barbara Fried, along with his brother, Gabriel Bankman-Fried. They managed these funds and directed donations to various political causes and candidates.
Moreover, Joe Bankman, a Stanford University law professor, is accused of advising on financial strategies to facilitate these political donations. The WSJ reports that emails show Joe Bankman’s direct involvement in the illicit operations, indicating he was well aware of the illegal straw-donor scheme.
Barbara Fried, who co-founded the political action committee (PAC) Mind the Gap, allegedly used her position to channel funds towards progressive groups and initiatives. Meanwhile, Gabriel Bankman-Fried is accused of directing donations to pandemic prevention efforts. This coordinated effort to disperse funds across the political spectrum aimed to amplify their influence and support favored causes without drawing attention to the origin of the donations.
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Former FTX Execs Also Involved
David Mason, ex-chairman of the Federal Election Commission (FCE), weighed in on the matter. Mason highlighted that the evidence presented in the emails constituted “strong evidence” of Joe Bankman’s knowledge and participation in the scheme.
The political donation scheme, as detailed by the WSJ, also involved Ryan Salame and Nishad Singh, two former FTX executives. They have already pleaded guilty to participating in the illegal straw-donor scheme. According to prosecutors, Salame directed funds to Republican candidates to dissociate the contributions from Bankman-Fried, while Singh supported liberal candidates.
The allegations have led to several legal proceedings, with the potential for significant legal liabilities for those involved. Moreover, Mason’s remarks underscore the gravity of the situation. It suggests that Joe Bankman could face direct legal consequences under campaign finance laws if the allegations are substantiated.
Despite the mounting evidence, a spokesperson for Joe Bankman has refuted claims of his involvement. They stated that Bankman had “no knowledge of any alleged campaign finance violations.” This defense, however, stands in stark contrast to the detailed emails that have surfaced.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Legal expert Fred Rispoli has stated that Ripple has a better chance of winning the US Securities and Exchange’s (SEC) appeal in their lawsuit if an unbiased panel is sitting on the case. However, he claimed that the Commission would likely have a 70% to 80% chance of winning if the Judges who sit on the case have a long history of agreeing with the government.
How Ripple Could Defeat The SEC
In an interview on the Thinking Crypto podcast, Rispoli mentioned that the odds would be 70% to 30% in favor of Ripple if the 2nd Circuit Court of Appeal Judges were unbiased. The lawyer noted that the “sad part” about the probabilities of who will win is that it hinges on who the three Judges that get assigned the case are.
CoinGape reported that the US SEC is appealing Judge Analisa Torres’s final judgment on August 7. However, the XRP community has continued questioning whether the appeal will only apply to the $125 million penalty or extend to Judge Torres’ ruling on the programmatic sales last year.
Fred Rispoli gave his opinion, stating that the SEC will likely appeal everything. He noted that the notice of appeal was about the summary judgment and not just the penalty ruling. As such, the Commission can appeal any of the rulings included in the summary judgment.
The legal expert believes that the Commission will focus on programmatic sales, which involves Judge Torres ruling that XRP isn’t a security in itself. He added that they will also seek a higher fine than the $125 million that Judge Torres awarded.
Fred Rispoli noted that the 2nd Circuit’s potential ruling on programmatic sales is most important for XRP holders and the broader crypto community. According to him, the SEC will move to cite the court’s ruling on its case against crypto firms like Binance, Coinbase, and Kraken if the court rules in the Commission’s favor on the programmatic sales.
How The SEC Could Lose It All
Fred Rispoli cited a scenario in which the 2nd Circuit could overturn Judge Torres’s rulings in favor of the SEC. He claimed that this would happen if Ripple got a really good panel. The lawyer also alluded to Ripple’s Chief Legal Officer (CLO) Stuart Alderoty’s comments that they intend to file a cross-appeal.
The legal expert remarked that it would be “foolish” if the crypto firm didn’t file a cross-appeal. He claimed that a cross-appeal would further solidify the company’s 70% chance of winning the appeal as the court will likely reach a “split the baby decision” if this happens. Rispoli explained that this means that the 2nd Circuit will decide to affirm all Judge Torres’ rulings rather than give a different opinion.
Meanwhile, the lawyer predicts the case will likely continue until at least January 2026. This aligns with the timeline for both parties to file their court processes. For instance, he stated that the SEC would likely not file its opening brief until December of this year. After that, he expects Ripple’s reply brief won’t come until March.
Therefore, the lawyer believes the crypto firm should push forward on the legislative front, considering how long the case could take. However, he noted that the good thing is that Judge Torres’ ruling on XRP not being a security remains the law of the land until regulatory clarity or a ruling is made in the appeal.
The Ripple SEC lawsuit negatively impacted the XRP price in the 2021 bull run as the Commission instituted the lawsuit in December 2020. However, crypto analyst Egrag Crypto predicted that the XRP Price will cross $5 despite the SEC appeal.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Transak secures its first Money Transmitter License (MTL) in Alabama.
- The license boosts security, speed, and compliance for US cryptocurrency services.
- Transak targets further state licenses as it enhances its Web3 payments infrastructure.
On October 3, 2024, Transak USA LLC achieved a significant milestone by securing its first Money Transmitter License (MTL) from the Alabama Securities Commission.
This regulatory approval positions Transak as a fully licensed financial institution in the state, a key step in its mission to provide secure and accessible cryptocurrency services across the United States.
Transak expanding its foothold in the US
The Alabama MTL solidifies Transak’s commitment to regulatory compliance, underscoring the company’s efforts to build a secure and transparent infrastructure for crypto transactions in the US.
With cryptocurrency purchases already enabled in 46 states, the company is actively working to secure additional licenses across the country. This proactive approach highlights Transak’s determination to make cryptocurrency widely accessible and compliant with stringent financial regulations.
As a registered Money Service Business with FinCEN, Transak’s new license is a significant trust signal for its users. It allows the company to provide enhanced security, faster transactions, and a more seamless user experience for crypto purchases in Alabama. The move also benefits decentralized platforms integrated with Transak’s services, enabling them to offer their users a smoother and more compliant crypto purchasing experience.
Bryan Keane, the Compliance Officer at Transak, remarked, “Obtaining the Money Transmitter License in Alabama showcases our commitment to compliance and our mission to make cryptocurrency accessible and secure for everyone.”
In the same breath, Sami Start, the CEO of Transak, emphasized the importance of the US market, stating, “Securing state licenses like this one is essential to delivering the best possible services here.”
With over 5.7 million users across 160 countries, Transak continues to expand its presence as the largest Web3 payments infrastructure provider. Headquartered in Miami, with additional offices and tech hubs globally, Transak remains focused on obtaining more state licenses in the US, ensuring its users enjoy an increasingly reliable and legally compliant crypto experience.
The Alabama MTL marks a major step forward for Transak as it strengthens its foothold in one of the world’s most regulated and lucrative markets.
- CFTC’s subcommittee recommends using DLT-based collateral in trading.
- Approval could broaden access to digital assets for smaller market participants.
- Strong ETF inflows signal growing institutional interest in digital assets.
In a significant development for the digital assets market, the US Commodity Futures Trading Commission (CFTC) is reportedly considering a proposal that would enable the use of digital ledger technology (DLT)-based collateral in commodities and derivatives trading.
According to Bloomberg, a subcommittee of the CFTC’s Global Markets Advisory Committee recently voted to recommend this proposal, which, if approved, could streamline transactions and promote broader adoption of digital assets in traditional finance.
A step toward mainstream adoption
If the proposal receives final approval from the main committee, it could lead to a paradigm shift in how trading collateral is managed.
The adoption of DLT-based collateral would allow traders to settle transactions using digital assets with the same speed and efficiency that digital ledger and blockchain technology offers.
This change would enable brokers to accept tokenized assets, such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) token, through market-embedded systems.
While the use of blockchain-based assets as collateral is already gaining traction among major financial institutions like BlackRock and JP Morgan, the CFTC’s potential approval would catalyze broader adoption across the industry.
As it stands, only large firms have been able to utilize these innovative financial instruments, but this move could open the doors for smaller market participants to access similar benefits.
Uncertainty ahead
Despite the positive momentum surrounding the proposal, several steps remain before it can be formally submitted for CFTC approval. The main committee must first review and endorse the subcommittee’s recommendation, and there are no guarantees that the CFTC will approve the proposal in its current form.
Regulatory concerns may arise regarding which institutions and blockchains are permitted to participate, which could introduce potential restrictions that may limit the scope of the initiative.
Furthermore, the broader context of digital assets in traditional finance cannot be ignored. Recent trends, such as strong inflows into spot Bitcoin exchange-traded funds (ETFs), indicate a growing acceptance and interest in digital assets among institutional investors.
For instance, BlackRock’s Bitcoin ETF has recently outperformed its peers, witnessing the highest daily inflow of any fund on September 25, marking a five-day streak of inflows across all spot Bitcoin ETFs in the United States.
This surge in interest may influence the CFTC’s decision-making process as they consider the implications of allowing digital assets as collateral.
As this unfolds, stakeholders will be watching closely as the regulatory landscape continues to evolve, potentially paving the way for a more integrated future for digital assets in commodities and derivatives trading.
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