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Sam Bankman-Fried, cryptocurrency billionaire and major donor to Democratic causes, is under investigation by the U.S. Securities and Exchange Commission (SEC) for potential violations of securities rules, according to Bloomberg.
Bankman-Fried, who was second only to George Soros amongst billionaire donors to Democratic groups in the 2022 midterm election cycle according to Forbes, is under investigation for his involvement in the ongoing liquidity crisis at the crypto exchange FTX, of which he’s founder and CEO, according to Bloomberg Thursday, citing an anonymous source familiar with the matter. The company allegedly loaned Alameda Research, a trading firm that Bankman-Fried founded, roughly $10 billion of its clients’ assets and has yet to pay back those loans following a series of high-risk trades, The Wall Street Journal reported Thursday, citing anonymous sources.
The Bahamas-based FTX had its assets frozen by the Securities Commission of the Bahamas, which appointed a provisional liquidator and pledged to work towards “the best possible outcome for the customers and other stakeholders of FTX,” according to a press release by the commission Thursday.
