According to Bloomberg, FTX US donated to a super-PAC battling for Senate control in the midterm elections only days before the company’s demise.
Crypto companies have become a big participant in the 2022 election season, with industry players giving $84.1 million until mid-October as Congress considers laws regulating digital currencies.
However, the majority of that money, 84% ($70 million), came from Bankman-Fried and other FTX executives. House and Senate committees have scheduled hearings on the firm’s demise for next month, with Bankman-Fried as a possible witness.
The Senate Leadership Fund, which is aligned with Senate Republican Leader Mitch McConnell and was the top spender in the 2022 midterms, received the $1 million donation on Octorber 27, according to its most recent filing with the Federal Election Commission.
The contributor listed on the FEC donation report is West Realm Shires Services Inc., and FTX US is its commercial name.
FTX US also gave $750,000 to the Congressional Leadership Fund and $150,000 to the American Patriots PAC, both of which supported House Republican candidates. It gave $100,000 to the Alabama Conservatives Fund, which backed Republican Katie Britt’s successful run for the state’s open Senate seat.
Individual executives at the broader FTX company have given far more money. Bankman-Fried emerged as a major donor to Democratic candidates leading up to the November 8 midterm elections, donating most of the $39.4 million that he gave to them, FEC records show. One of his top lieutenants, Ryan Salame, gave $23.6 million – mostly to Republicans.
XRP lawyer John Deaton stated that FTX could approach those who received funds from it 90 days before it filed for bankruptcy. This could mean that all political beneficiaries of SBF could face preference claims.
While several members of Congress, including Illinois Senator Richard Durbin, a Democrat, and Republican Representative Kevin Hern of Oklahoma have said they would return donations from FTX executives or give the money to charities, there isn’t a requirement in election law for committees to return donations to companies that go bankrupt.
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