Even before the spectacular collapse of the major cryptocurrency trading platform FTX last week, Republicans and Democrats were going to be in an awkward position regulating the industry, given the tens of millions of dollars many lawmakers took from FTX’s CEO, Sam Bankman-Fried, and his top lieutenant Ryan Salame.
But after FTX folded—and with Bankman-Fried put “under supervision” by authorities in the Bahamas for potential fraud charges—lawmakers are in an even more uncomfortable position as they face the dreaded question: Will you give the money back?
In the 2022 election cycle alone, Bankman-Fried personally gave more than $13 million to dozens of candidates and campaign organizations of both parties. While the vast majority of the CEO’s donations were to Democrats, Salame gave nearly $24 million to Republicans. Outside PACs associated with the two also spent heavily: Bankman-Fried’s PAC spent over $23 million supporting Democrats, while Salame’s PAC spent over $12 million for Republicans.
On its own,…
