Recently, CoinDesk has uncovered a shocking revelation regarding the U.S. Congress. It turns out that more than one in three of the 535 senators and representatives in Congress have connections to the fraud-ridden crypto giant, FTX. This is a result of campaign support from one of the senior executives of the company.
FTX is a crypto exchange that filed for bankruptcy in Delaware in November of last year. This was after CoinDesk revealed unusually close ties between FTX and Alameda Research, an affiliated hedge fund. CoinDesk has identified 196 members of the new Congress who took cash from Sam Bankman-Fried or other senior executives at FTX. These names in Congress range from the heights of both chambers, including new Speaker of the House Kevin McCarthy (R-Calif.) and Senate Majority Leader Chuck Schumer (D-N.Y.), down to a list of recipients new to high-level politics.
After the lawmakers received the money, it became clear that the funds sprang from this colossal financial swindle. CoinDesk reached out to all 196 lawmakers to ask what they would do with the money. Most of the politicians who responded said they handed it over to charities to remove the taint of contributions from executives such as former FTX CEO Bankman-Fried, whose federal fraud charges also include an accusation that he violated campaign-finance laws. Others have revealed they had conversations with the U.S. Department of Justice about setting aside the money until it can be dropped into a fund to compensate FTX victims.
One example of a lawmaker who received FTX contributions is Rep. Lou Correa (D-Calif.). He received the full limit of $2,900 directly from Bankman-Fried. When asked about it, Correa stated that “I don’t know the gentleman – never talked to him.” However, he did say that he intended to donate that same amount to his alma mater, California State University, Fullerton, “to support their Dreamer education fund.”
This revelation raises many questions about the integrity of our government and the potential influence of big money on our political system. It’s important for the public to be aware of these connections and for our elected officials to take responsibility for their actions and make amends. It’s also important for the Department of Justice to investigate and hold those who broke the law accountable.