The spectacular meltdown of the FTX crypto exchange has revealed it to be nothing more than a slush fund for Democrat candidates.
Sam Bankman-Fried stepped down as FTX CEO on Friday after it was announced his exchange had filed for Chapter 11 bankruptcy in the face of a multi-billion dollar liquidity crunch.
On midterm election day, Bankman-Fried managed to lose nearly 94% of his estimated $15.6 billion fortune.
The U.S. branch of FTX is now valued at $1, down from a peak of $8 billion in January. Bankman-Fried is now also under investigation by both the Department of Justice and U.S. Securities and Exchange Commission.
Prior to the midterms, Bankman-Fried was touted by POLITICO as the Democrats’ “newest megadonor” and “potential Democrat savior” second only to billionaire globalist George Soros.
“We’ve never seen something like this on this scale,” said Bradley Beychok, co-founder of American Bridge 21st Century, a Democratic super PAC. “On our side, there’s a small pool of people who write these kinds of checks and they tend to be the same folks. But Sam, to his credit, came right in with a big splash.”
In fact, Bankman-Fried spent almost $40 million on Democrat candidates this year.
The 30-year-old Bankman-Fried has been a major force in Democratic politics, ranking as the party’s second-biggest individual donor in the 2021–2022 election cycle, according to Open Secrets, with donations totaling $39.8 million. That ranks only behind George Soros (about $128 million) but ahead of many other big names, including Michael Bloomberg ($28.3 million). What’s more, he had promised to spend far more on Democrats moving forward, predicting in May that he’d fund “north of $100 million” and had a “soft ceiling” of $1 billion for the 2024 elections.
He also donated $10 million to then-candidate Joe Biden in 2020.
A YouTuber named “Nobody Special Finance” succinctly explained the FTX “Ponzi scheme” that led to its collapse this week.
“The truth is, Sam Bankman-Fried is a liar and a crook,” said Nobody Special. “His personal crypto, FTX Token, was basically a Ponzi scheme … He used his Ponzi token as collateral to borrow billions of real dollars that he couldn’t pay back … He then used those real dollars to build an empire out of dying companies.”
“[Sam Bankman-Fried] then sold people cryptos like Bitcoin, or so they thought. What they really bought was an IOU.”
In essence, Bankman-Fried used his corrupt earnings to finance the Democrats’ midterm races to head off a “Red Wave.”
Now that FTX has imploded, Democrats are saving face by renewing calls for the crypto space to be heavily regulated.
NOW – White House: "Regulation of cryptocurrencies is needed." pic.twitter.com/01C9VYkff4
— Disclose.tv (@disclosetv) November 10, 2022