The FTX saga continues, and this time, Sam Bankman-Fried’s family is involved in committing crimes related to illegal political financing in the US. A WSJ exposé revealed that SBF’s entire family was in on misappropriating FTX customer funds, and their misdeeds are well-documented through email chains the family members were involved in. Those funds witnessed alleged use in influencing the 2022 elections.
The legal implications can affect SBF’s father, Joe Bankman, his mother, Barbara Fried, and his brother, Gabriel Bankman-Fried. Joe Bankman was allegedly involved in advising financial strategies revolving around political donations, while Barbara Fried and Gabriel Bankman-Fried funded unlawful political contributions.
Gabriel Bankman-Fried is accused of channeling funds to pandemic prevention efforts, and Barbara Fried sent contributions to progressive causes through the Mind the Gap super PAC she co-founded.
A representative for Joe Bankman said he was not aware that the contributions were illegal. However, emails obtained by prosecutors reveal that he was in the know of the illegal scheme he operated and the campaign finance laws he violated.
SBF was sentenced for his criminal activities in March for operating the defunct FTX exchange—receiving 25 years in prison alongside a $11 billion forfeiture. “Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice,” said Attorney General Merrick B. Garland after SBF’s sentencing.
The courts will look at SBF’s family similarly if enough proof exists, as their alleged crimes can carry jail time beyond fines. They held FTX’s co-CEO Ryan Salame to the same standards, sentencing him to 7.5 years in prison. Salame pleaded guilty to operating an illicit money transmitting business and violating campaign finance laws. Other former FTX executives, including Caroline Ellison and Nishad Singh, have pleaded guilty, with their sentencing yet to come.
Image by Vilius Kukanauskas from Pixabay
