As the FTX collapse unfolds and Sam Bankman-Fried’s story is told it is apparent that he “donated” money to nearly everyone who should have been questioning the crypto exchange turned hedge fund. SBF’s payroll was long, and included prominent politicians, media groups, journalists and regulatory enforcement agents. The conflict of interest that arises when individuals who should be focused on oversight are rewarded with grants and donations is obvious. Could this be the reason why SBF, a man accused of stealing $10 billion, has been treated relatively well since the collapse of FTX?
It has been well known that he was one of the largest donors during the 2022 US midterm elections, giving more than $40 million to politicians who are now in charge of investigating him and his Ponzi scheme.
SBF’s political donations tracker. pic.twitter.com/Aa9adaygWh
— Empress-Elect Viking-Goddess Lisa (@brasiwaiian) December 22, 2022
Politian’s weren’t alone on SBF’s payroll, he was notorious for sending funds to journalists. He created a foundation, “Building a Better Future”, that was used to issue “grants” to media companies. A grant is a type of financial assistance provided by a government agency, foundation, or other organization to support a specific project or purpose. Grants are often used to fund research, education, or other initiatives that align with the goals and priorities of the granting organization. In return he was hailed as the next J.P. Morgan by these paid pundits.
Unfortunately, it appears that SBF’s payroll included regulators at the SEC. The Securities and Exchange Commission (SEC) is a U.S. government agency that regulates the securities industry, including the stock and bond markets. Its main responsibilities include protecting investors, maintaining fair and orderly markets, and promoting capital formation.
The SEC is an independent agency that operates within the executive branch of the federal government. It is headquartered in Washington, D.C., and has regional offices located throughout the United States.
The SEC administers federal securities laws, including the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Company Act of 1940. These laws establish the basic framework for regulating the securities industry, including the registration of securities offerings, the regulation of broker-dealers and investment advisers, and the oversight of securities exchanges and other self-regulatory organizations.
The SEC also has the authority to enforce these laws and bring enforcement actions against individuals or companies that violate them. It can impose penalties, including fines and disgorgement of illegal profits, and can also seek injunctions to prevent further violations.
In addition to its regulatory role, the SEC also plays an important role in providing information to investors. It requires companies to disclose certain financial and other information to the public, and maintains an online database of these disclosures called EDGAR (Electronic Data Gathering, Analysis, and Retrieval). This database is available to the public and can be searched by anyone interested in learning more about a particular company or its financial performance. If members of the governing regulatory agency were under financial influence from SBF it raises the question as to who should be in charge of regulating the crypto space.
Breaking: SEC counsel Berkowitz (CFTC) resigns after being found to have accepted bribes from @SBF_FTX
— MartyParty (@martypartymusic) December 28, 2022
Could all of this money being thrown at regulators, journalists and politicians effect the treatment that SBF will receive when being tried for his crimes at SBF? Many believe it already is. He was able to hideout in his Bahamas multi-million dollar mansion for days before authorities were able to apprehend him and extradite him to the US. Once in the US the Southern District of New York stated that he needed to post $250 million, a fraction of the billions he is accused of stealing. He has been handed “softball” interviews where he was able to discuss (poorly) his side of the scandal. SBF even had the Chair of the House Committee on Financial Services literally blowing him kisses.
Maxine Waters, Chair of the House Committee on Financial Services, blowing SBF a kiss back in 2021.
— IT Guy (@ITGuy1959) November 17, 2022
In case you were wondering how so many people were duped.pic.twitter.com/b5MWYjCDju
As this case unravels we will get more insight on what was going on at FTX and maybe learn what happen to the $10 billion that has gone missing. Currently SBF’s donations have remained with their recipients and SBF has posted bail to stay at his parents California Mansion, it’s hard to believe that this treatment is not the result of the corrupt dealings that went on at FTX. While we might never know all of the details surrounding FTX we do know one thing is sure, SBF is sorry.
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