Sam Bankman-Fried, the former CEO of cryptocurrency exchange FTX, has been accused of breaking campaign finance regulations by allegedly claiming that the money he donated to political campaigns was from other people, when in fact it came from his crypto hedge fund, Alameda Research.
An important donor during the latest election cycle, Bankman-Fried is said to have given more than $40 million.
Because of the allegations, the Democratic National Committee (DNC) has declared that it is freezing the $815,000 in contributions it received from Bankman-Fried since 2020 and will return the funds when it has received the proper instructions from the legal proceedings.
Bankman-Fried was arrested in the Bahamas on December 12th, and he is facing a total of eight charges, including wire fraud, commodities fraud, securities fraud, money laundering, and violation of US campaign finance laws.
