Dem Senate calls for criminal investigation into Dem Megadonor

Senate Democrats are calling for a criminal investigation into the Democratic Party’s second-largest 2021-2022 election cycle donor, CEO and founder of now-bankrupt FTX cryptocurrency exchange Sam Bankman-Fried.

On Wednesday, Democrat Sens. Elizabeth Warren of Massachusetts and Sheldon Whitehouse of Rhode Island sent a letter to Attorney General Merrick Garland asking for a criminal investigation into what they called the “fraudulent tactics” perpetrated by Bankman-Fried.

“Given the department’s commitment to holding perpetrators of white-collar crimes personally accountable, we expect the DOJ to investigate the actions that led to the collapse of FTX with the utmost scrutiny,” the senators wrote in their letter.

If resumed, the Garland-led Justice Department appointed by President Joe Biden would investigate Bankman-Fried, who “contributed more than $5 million” to PACs in support of Biden during his 2020 presidential campaign, he said. reported MarketWatch. At the time, the cryptocurrency mogul said “he was motivated by Biden’s ‘generic stability and decision making’.”

Warren is a member of the Senate Banking Committee and Whitehouse sits on the Senate Judiciary Committee; argue that Bankman-Fried “revealed his true self-enrichment interests last year when he embezzled $300 million from his own portfolio.”

“John Jay Ray,” the senators add in their letter, worked as “an executive who managed several companies through bankruptcy, including energy trading giant Enron, and who has since taken over as chief executive officer of FTX , shedding new light on Bankman-Fried’s bankruptcy negligence in a court filing last week.

“In the filing, ‘Mr. Ray described an astonishing level of disorder and said he had never seen ‘such a complete failure of corporate control.'” surveillance abroad” and “the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals”. He described “the use of the software to ‘hide misuse of client funds'” and told the court that the financial statements produced under Bankman-Fried could not be trusted, given that “[FTX] has not maintained proper books and records, or security controls, in relation to its digital assets.'”

Ahead of the senators’ letter to Garland, Warren published an op-ed on Tuesday in the Wall Street Journal calling for regulation of cryptocurrency.

“FTX’s implosion should be a wake-up call,” he wrote. “Regulators must enforce the law before more people are duped, and Congress must plug the remaining holes in our regulatory framework before the next crypto catastrophe brings our economy down.”

The Congresswoman adds in her Journal piece that “if Mr. Bankman-Fried and FTX executives committed fraud, then federal prosecutors should send them to jail.”

Since the story broke following the FTX crash, a wave of rhetoric regarding the exchange has been unleashed on both sides of the political aisle.

Last week, House Republicans sent a letter to Secretary of State Antony Blinken. In their letter, Reps. Troy Nehls and Louie Gohmert of Texas, Mary Miller of Illinois and Byron Donalds of Florida have expressed their concern that US military aid sent to Ukraine may have been improperly invested in FTX.

“It has come to our attention that billions of taxpayer dollars sent to Ukraine to assist their war efforts were potentially invested in a cryptocurrency exchange which then made massive donations to Democrats.”

They added, “We sincerely hope that the main driver behind the billions in congressional assistance to Ukraine has not been Democrats trying to stay in power, and that none of the missing funds have been used as a step to avoid campaign finance laws.” or end up in Democrat pockets».

While there is no evidence to back up the money laundering claims, Nehls later took to Twitter to highlight four points surrounding the situation.

“Here’s what we know,” the the congressman tweeted: “The White House funded Ukraine. Ukraine partnered with FTX. FTX funded Democrats with tens of millions during the midterm. The American people deserve answers.”

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