Advertisement

Politicians are regifting Sam Bankman-Fried’s donations to distance themselves from the disgraced FTX founder

Jabin Botsford—The Washington Post/Getty Images

Sam Bankman-Fried gave millions to support Democrats in the midterms, but with the company unraveling and a bankruptcy proceeding, several politicians are giving away his contributions.

The founder and former CEO of FTX donated nearly $40 million to Democrats this election cycle, trailing only George Soros, who gave away about $128 million, according to OpenSecrets, a D.C.-based nonprofit.

An aide for Sen. Dick Durbin (D-Ill.) told CNBC on Monday that the senator’s campaign would give to “an appropriate charity” a $2,900 donation from SBF. Another Democrat, Sen. Kirsten Gillibrand of New York, said she planned to donate SBF’s $16,600 contribution to a Bronx-based charity, Ariva Inc., that promotes “individual wealth and economic development in low-to-moderate-income communities.”

Gillibrand along with Sen. Cynthia Lummis (R-Wyo.) cosponsored an SBF-supported bill earlier this year that aimed to clarify cryptocurrency regulations. Bankman-Fried, who’s often discussed his commitment to “effective altruism,” also supported other pro-crypto politicians through both direct donations and political action committees.

ADVERTISEMENT

Rep. Jesus “Chuy” Garcia (D-Ill.) last week donated $2,900 he'd received from Bankman-Fried to the Northwest Center, a Chicago charity that aims to improve financial literacy and economic well-being, according to Politico.

While SBF donated mostly to Democrats, a top executive at FTX Digital Markets, Ryan Salame, spent about $20 million to support Republicans during the same cycle, according to OpenSecrets. Some of those politicians are also returning funds.

A representative for Rep. Kevin Hern (R-Okla.) told the Block that a $5,000 contribution from Salame to the Hern Victory Fund, a joint fundraising committee with ties to his campaign, has since been given to an Oklahoma charity called Food on the Move.

This story was originally featured on Fortune.com

More from Fortune:

The Pandemic Housing Bubble is bursting—KPMG says prices falling 15% look ‘conservative’

The American middle class is at the end of an era

Meet the 30-year-old who just became Europe’s wealthiest millennial after inheriting half of the Red Bull empire

Sam Bankman-Fried’s crypto empire ‘was run by a gang of kids in the Bahamas’ who all dated each other