FTX cancer continues to spread its metastases. If the flash bankruptcy of the former number 2 platform in the crypto sector has not yet shaken the industry, it is today right in the heart of the American democratic machine that his last words continue to resound. Shaking along the way a system that once again proves to be inattentive to who finances it, how and with what money.
FTX, from cryptocurrencies to mass lobbying
The case is revealed by our American colleagues from CoinDesk (which were also the basis of the initial investigation into the FTT token whose avalanche revelations would eventually seal the fate of the exchange). We learn this time that one in three American congressmen would benefit in one way or another from the generosity of Sam Bankman-Fried or his close-knit group.
Thus, 196 representatives out of a total of 535 admitted to having received money from FTX.
A disconcerting proportion given the relatively short existence of the FTX platform which demonstrates that if the crypto exchange team has not been very careful in terms of accounting rigor, it has instead been formidable efficiency in terms of lobbying.
We knew that SBF had benefited both the Democratic Party and the Republican Party of its generosity with millions (those of its clients, it is always good to remember). Coindesk’s investigation now reveals how deeply even the FTX boss has managed to meddle in the mysteries of American law.
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The messy charity goes through Congress
It should be remembered: that parliamentarians, parties and other political groups benefit from donations and other bequests is not unusual, especially in the American political context (in Europe sports bags full of small denomination banknotes are preferred, perhaps a cultural issue).
And if we can even care what the thing says about our democracies under the direct influence of the deepest pockets, we’ll agree that the argument really isn’t there.
What begs the question when it comes to the real rain of money FTX has been showering on US lawmakers is its true industrial dimension and its almost systematizationall in a form of tolerance and silent acceptance.
And this is basically one of the pieces of the problem: if in any case (and at the state of the revelations) no law, no regulation seems to have been violated, it is precisely the clear absence of questions about the origin of the funds and the underlying ambitions (only rarely do we distribute the millions for the simple pleasure of giving) that raise questions.
In this regard, while CoinDesk has solicited all 196 interested parties, the Californian representative Lou Correa who is presented as having received several thousand dollars “directly from Sam Bankman-Fried” sums up the gist of a narcotic’s problem: “I don’t know this gentleman, I’ve never spoken to him”.
The vast majority of representatives (and more generally their lawyers) do not deny either the reality of the donations or their amount, assuring that they have proceeded according to the regulations in force. However, there are now 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.
The FTX hot potato
In keeping with the well-known American saying, many teams of reps are currently trying to make lemonade out of FTX lemons and are attempting: With more or less success – to get rid of these suddenly bulky donations. They have two main choices: hand them over to the investigative services of the Ministry of Justice, in order to contribute to a future victims’ compensation fund, or entrust them to funds and charities.
Thus, out of 53 teams that responded to Coindesk, 64% decided to forward donations to non-profit causes (“corporate monopoly advocacy groups” – appreciate the irony – and other “crisis centers for pregnant women”, for example.)
But if at first glance the approach seems commendable, even relevant, bankruptcy expert Anthony Sabino urged by the US media warns: even donated to charitable foundations and other associations, this money will continue to be branded with the FTX seal of infamy and it will still potentially have to be returned to the victims at some point. At the end of the chain, it is therefore these non-profit structures that could be asked for the cursed funds, even years from now.
FTX isn’t done slowly poisoning more industries, though its former boss still claims the whole situation is basically down to “bad luck.”
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