Backlash and Accusations of Political Protection
Prosecutors have announced that they do not plan to proceed with a second trial against Sam Bankman-Fried, the founder of FTX cryptocurrency exchange. They argue that much of the evidence that would be presented in a second trial was already offered in the first trial and can be considered during the defendant’s sentencing in March 2024. This decision has drawn backlash from those following the case.
Representative Tim Burchett accused the prosecutors of protecting the “deep state” by withholding information about politicians who may have been bribed or influenced by Bankman-Fried. Conservative commentator John Cardillo suggested that the prosecutors were shielding Democrats from being named as recipients of Bankman-Fried’s donations. CryptoLaw founder John Deaton criticized the prosecutors’ decision as a “disgrace” and questioned the independence of the Department of Justice.
Criticism of Corrupt Practices and Political Donations
Collin Rugg, co-owner of Trending Politics, commented that the prosecutors’ decision implied that making bribes with stolen money is acceptable as long as it benefits U.S. politicians. Rugg highlighted Bankman-Fried’s $100 million donations during the 2022 midterms, with a significant amount going to dark money groups linked to Senate leaders Mitch McConnell and Chuck Schumer. Rugg also shared a video clip showing Schumer blowing Bankman-Fried a kiss during one of their encounters.
According to Federal Election Commission filings, Bankman-Fried primarily donated to Democratic candidates and left-wing groups. His political giving was focused on the Protect Our Future PAC, which supports candidates committed to preventing future pandemics.
Charges and Sentencing
Bankman-Fried has been incarcerated since August after his bail was revoked for alleged witness tampering. He was convicted earlier this month on seven federal charges. The sentencing, scheduled for March 28, carries a maximum sentence of 110 years, although sentencing guidelines may result in a lesser punishment.
The charges against Bankman-Fried include misappropriation and embezzlement of FTX customer deposits, as well as scheming to mislead investors and instructing other executives to do the same. Prosecutors argue that the evidence presented in the first trial would have been repeated in a second trial, and they are prevented from including the charge of unlawful campaign contributions due to the extradition agreement with the Bahamas.
Contributors to this report: Breck Dumas, Suzanne O’Hallora, and Timothy Nerozzi.
