Riots in Congress: The 200 MPs and FTX’s Cursed Money

cancer FTX it never stops spreading its metastases. If the rapid bankruptcy of the former number 2 platform in the crypto sector has not yet finished shaking the industry, it is today in the heart of the American democratic machine that its last lines continue to resonate. Shaking down the road a system that once again reveals itself to be paying little attention to who finances it, and with what money.

FTX, from crypto to mass lobbying

The case is detected from our American colleagues from CoinDesk (which were also behind the initial investigation into the FTT token, the findings of which would ultimately seal the exchange’s fate). This time we learn that one in three members of the US congress would have benefited in one way or another from the largesse of Sam Bankman-Fried or his close team.

So, there are 196 representatives out of 535 in total who have admitted that they received money from FTX.

A surprising proportion in view of the relatively short existence of the FTX platform, which shows that if the team of the crypto exchange was not very attentive in terms of accounting rigor, it was on the other hand extremely efficient in terms of it’s about lobbying.

Infographic of the number of congressmen who have received donations from FTX, source: Coindesk

We knew SBF had benefited as in the Democratic Party and the Republican Party for its greatness with millions (those of her clients, it’s always good to remember this). Coindesk’s investigation now reveals how deeply the FTX boss also managed to meddle in the mysteries of US law.

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Untidy Charity Goes Through Congress

It should be remembered that parliamentarians, parties and other political groups benefit from donations and other legacies is not unusual, especially in the American political context (in Europe, we prefer sports bags filled with small cutoutsperhaps a matter of culture).

And if we can even be concerned about what it says about our democracies under the direct influence of the deepest pockets, we’ll agree that the topic isn’t really there.

What begs the question when it comes to the actual rain of money that FTX has rained down on US lawmakers is its true industrial dimension and its quasi-systematizationall in a form of tolerance and tacit acceptance.

Sam Bankman-Fried and the US Congress

And this is ultimately one part of the problem: if in any case (and in the state of revelations), no law, no regulation seems to have been violated, it is indeed the patent absence of questions about the origin of funds and ambitions fundamentals (we rarely dole out millions for the simple pleasure of providing) which raise questions.

In this regard, while CoinDesk has requested all 196 interested parties, the Californian representative Lou Correa who is reported to have received several thousand dollars “directly from Sam Bankman-Fried” sums up the essence of a narcotics problem: “I do not know this gentleman, I have never spoken to him.”

The vast majority of representatives (and generally their legal teams) do not deny either the reality of the donations or their amounts, making sure that they have proceeded according to the rules in force. However, now there are dozens of people who are trying in every way to quickly get rid of money that has suddenly become very smelly, sometimes in a messy way.

FTX Hot Potato

In keeping with the famous American saying, many representative teams are currently trying to make lemonade out of FTX’s lemons and are trying to – With more or less success – to get rid of these suddenly heavy donations. Two main choices are available to them: hand them over to the investigative services of the Ministry of Justice, with the aim of contributing to a future compensation fund for victims, or make them benefit funds and charities.

Thus, of the 53 teams that responded to Coindesk, 64% decided to send donations to non-profit purposes (“corporate monopoly advocacy group” – I appreciate the irony – and “other crisis centers for pregnant women”, for example.)

But if at first glance the approach seems laudable, even important, the bankruptcy expert Anthony Sabino asked by the American media warns: even if given to charitable foundations and other associations, this money will continue to be stamped with the stamp of shame of FTX and will still potentially have to be returned to victims at some point. At the end of the chain, it is these non-profit structures that can be asked for the cursed funds, including years later.

FTX has not been slow to poison many sectors, although its former boss still claims that this whole situation is basically the “unlucky” fault..

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