The arrest of FTX founder Sam Bankman-Fried for fraud has rocked Washington, D.C., especially Democrat PACs funded by the disgraced crypto executive.
Bankman-Fried was arrested Tuesday, hours before he had been expected to testify before a U.S. House committee investigating his role after FTX’s collapse.
He was arrested in the Bahamas for eventual extradition to the U.S. and was charged with misleading investors and mishandling billions in funds.
Federal officials also alleged that Bankman-Fried conspired to commit multiple violations of campaign finance laws involving donations in the “tens of millions of dollars.”
Bankman-Fried donated $40 million to candidates and campaign groups in the two years before the midterm elections, with most of the money going to Democrats, The Washington Post reported.
The newspaper said the amount Bankman-Fried publicly reported gave to Democrat-aligned groups before the midterms was surpassed only by that of progressive billionaire George Soros.
The House Majority PAC and the Senate Majority PAC, which help elect Democrats, were among the groups who most benefited from Bankman-Fried. They received about $7 million from him over the past two years, federal data shows.