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Sam Bankman-Fried, who is now facing several federal charges, including fraud, after the massive collapse of crypto-currency exchange FTX, had a series of meetings with Biden White House officials ahead of the 2022 midterm elections that were previously undisclosed.
According to Bloomberg News, Bankman-Fried, who was the second-largest donor to the Democratic Party during the recently concluded election cycle, met with Biden officials on four different occasions, the last of which took place in September.
“The Democratic donor, 30, awaiting trial for what prosecutors say is one of the biggest financial frauds in U.S. history held talks with senior White House advisor Steve Ricchetti on September 8,” the UK’s Daily Mail noted, citing the Bloomberg report.
“He has had at least two other meetings with Ricchetti on April 22 and May 12 and another with top aide Bruce Reed,” the DM report noted further, adding that Bankman-Fried’s brother, Gabriel, also took part in a White House meeting on his own in May.
The outlet noted further:
Bankman-Fried is now under house arrest at his parents’ $4 million home in Palo Alto, California, after he was freed in a Manhattan court on a $250 million bond. The former CEO, 30, is facing securities and wire fraud charges related to his collapsed crypto exchange FTX.Â
Bloomberg reported that the meetings focused on the crypto industry and exchanges, and did not involve politics.
Bankman-Fried was the Democratic party’s second biggest donor in the 2022 election cycle and has appeared in hearings on Capitol Hill.Â
The outlet noted that several Democrats who received donations from Bankman-Fried have since donated them to various charities, returned the money, or are waiting for the Justice Department to determine the best move.
In court filings, federal prosecutors said that the disgraced crypto mogul, 30, used FTX like his “personal piggy bank,” also funneling billions to Alameda Research, an investment firm that lost tens of billions of investor dollars. He is set to be arraigned in federal court in Manhattan on Jan. 3, and if he’s convicted on all counts, he could be sentenced to life in prison, essentially — 115 years.
“Following his December 12 arrest in the Bahamas, Bankman-Fried was held in the notorious Fox Hill Prison, where inmates are reportedly crammed in cells with multiple other inmates, without access to running water or other means of basic hygiene,” the DM reported, adding that he appears to have gotten special treatment, however.
“It was earlier reported that Bankman-Fried was held in the sickbay at the prison – dubbed ‘Fox Hell’ by fearful locals – where he reportedly received preferential treatment over other inmates,” the outlet noted further.
“The embattled crypto crook reportedly had access to his own toilet, running water, a TV, local newspapers, crossword puzzles and a host of other perks – including food that adheres to his vegan lifestyle,” the report continued.
Before he was arrested, Bankman-Fried — in a series of public appearances — acknowledged making mistakes that led to the collapse of the crypto exchange, once valued at around $30 billion, but he maintained that he was innocent of criminal intent.
But that said, two former associates, former Alameda CEO Caroline Ellison and former FTX chief technology officer Gary Wang, have both entered guilty pleas and are now cooperating with federal prosecutors.
Earlier this month, White House press secretary Karine Jean-Pierre was asked if President Joe Biden planned to ask his campaign to return donations made from Bankman-Fried, but she said she couldn’t answer the question due to the Hatch Act, which bars civil service workers from engaging in political activities.
“[I’m] limited on what I can say and anything that’s connected to political contributions from here, I would have to refer you to the DNC,” she said.
However, earlier this week, she faced new pushback from an Associated Press reporter, who said, “I’m asking the president’s opinion, though.”
“You asked me two questions: You asked me about will he return donations and then you asked me about his opinion. I’m answering the first part, which is I’m covered by the Hatch Act from here. I’m limited on what I can say. And I just can’t talk to political contributions or anything related to that,” she said, adding: “I cannot speak to that from here.”
