Sam Bankman-Fried, the mastermind behind the alleged billion-dollar crypto fraud scheme at FTX, had deep ties to the Biden administration, the Democratic party and Silicon Valley.
These connections allowed Bank(ruptcy)man-Fried to ply his alleged Ponzi scheme for more than three years amassing more than $2 billion in capital.
It appears from recent reports that Bankman-Fried and his cohorts were running a Bernie Madoff meets Theranos meets Jeffery Epstein type scam even though people were calling it a Ponzi scheme for more than 18 months ago.
Bankman-Fried, a MIT grad who worked a quant trader for a small firm, bursts on the scene in 2019 with FTX, a crypto exchange outfit trading in smaller alt coins.
His parents are highly regarded tax law professors at Stanford, which will come in handy as FTX grows. Bankman-Fried had operations in many tax havens moving money around through subsidiaries to stay ahead of regulators, investors and critics.
His aunt is a featured health professor who works for and is promotes by the World Economic Forum.
Bankman-Fried during the 2020 election cycle was the second largest donor to the Democratic party — just behind George Soros in donations — to the tune of $50 million in contributions.
His mother runs one the largest Democratic-fueled get-out-the-vote programs in the country.
Bankman-Fried appeared before the Biden administration’s Securities and Exchange Commission and the Commodities Futures Trading Commission in talks about regulating other crypto exchanges.
CNBC’s Jim Cramer in 2020 called Bankman-Fried “the next J.P. Morgan” on his show. Word to the wise, if Cramer loves a company run the other way quick. Also CNBC contributor Kevin O’Leary was a paid ambassador, spokesperson and investor in the company.
It is alleged in some reports that recent U.S. foreign aid to Ukraine has been funneled back to FTX to fund Democratic candidates in the 2022 election cycle.
Fast forward to the end of October of this year. Binance, the main competitor to FTX, says it is pulling out of deal to buy FTX because of its shady operations and lack of transparency in its funding and operations. The Binance CEO called Bankman-Fried ‘psychopath’ after the news broke.
This quickly leads to a “bank run” on FTC. Bankman-Fried says all is well with the company however the next morning the company and all its subsidiaries declared bankruptcy.
As court-appointed administrators come in, more than $1 billion in customer accounts vanishes, which FTX alleges was taken during a hack of their servers.
Bankman-Fried is allegedly in the custody of the Bahamian government right now. It does not appear anyone in the Biden administration — whether the Justice department or other federal agencies — want to move for extradition or charges to be brought.