Consultant Jake Auchincloss, a Massachusetts Democrat, defended retaining a marketing campaign donation from Sam Bankman-Fried following the FTX founder’s arrest on Monday.
Bankman-Fried was arrested within the Bahamas Monday and charged with wire fraud, securities fraud and cash laundering, at some point earlier than he was scheduled to testify earlier than the Home Monetary Providers Committee. He started dealing with scrutiny over his monetary dealings earlier this 12 months. In November, the beleaguered cryptocurrency trade declared chapter, that means its buyers could possibly be left with nothing.
The FTX CEO additionally made headlines for donating thousands and thousands of {dollars} to Democratic candidates all through the 2022 midterms, together with Auchincloss, the vice chair of the Monetary Providers Committee.
Bankman-Fried contributed $5,800 to Auchincloss’ re-election marketing campaign all through 2022, based on Federal Election Fee knowledge. The donations are inside the authorized restrict, as a person can donate as much as $2,900 to a candidate in every election—that means he donated the utmost quantity to Auchincloss, who ran unopposed, throughout his major and basic elections.
Nonetheless, Bankman-Fried’s marketing campaign donations to Democrats, together with these on committees overseeing the monetary trade, have raised eyebrows. Bankman-Fried has stated that he gave equally to Democrats and Republicans, the latter by means of so-called darkish donations.
Auchincloss was pressed on whether or not he would return the marketing campaign donation throughout an look on WBUR, a Boston-based radio station, on Tuesday. He defended retaining the donations, arguing the funds have been despatched to different Democrats in additional aggressive elections forward of the midterms.
“I am not going to ship cash to a man in a Bahaman jail, that is for positive. That cash is out the door, serving to to elect Democrats, and we have seen already that underneath the management of Chairwoman Waters that Democrats on the Monetary Providers Committee have held unhealthy actors to account throughout a spread of industries,” Auchincloss stated.
Different politicians who acquired political donations have both returned the cash or pledged to donate it to charity.
Beto O’Rourke, the Democrat who ran in Texas’ gubernatorial race, returned a $1 million test from Bankman-Fried forward of election day after FTX’s scandals have been reported. His marketing campaign stated the big donation was unsolicited and “took the marketing campaign without warning,” based on The Texas Tribune.
Senator Dick Durbin, an Illinois Democrat, will give $2,900 donated to his marketing campaign “to an applicable charity,” an aide advised CNBC. Consultant Chuy García, additionally an Illinois Democrat, donated a $2,900 contribution to Chicago’s Northwest Middle, a corporation that focuses on monetary literacy.
Shortly after Auchincloss defended the donation on WBUR, the U.S. authorities charged Bankman-Fried with a number of monetary crimes, alleging that he deceived buyers to complement himself. Auchincloss has not stated whether or not these fees will impression his determination to maintain the donations.
Newsweek reached out to Auchincloss’ workplace for added remark.
