Alexandria Ocasio-Cortez Furious After Arrest of Top Democrat Donor

Alexandria Ocasio-Cortez Furious After Arrest of Top Democrat Donor

Democratic Socialist Representative Alexandria Ocasio-Cortez from New York expressed her anger following the arrest of Democratic megadonor and FTX founder Sam Bankman-Fried.

Her distress was not due to the arrest itself, but rather the timing of it.

“Bankman-Fried was scheduled to testify before the House tomorrow. He was arrested tonight. While I am disheartened that we will not have the chance to present our questions, we anticipate more information emerging and justice being served in this matter,” she stated on Twitter.

The previous CEO of FTX has been indicted on multiple charges, including wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, conspiracy to defraud the Federal Election Commission, violations of campaign finance laws, and conspiracy to commit money laundering, according to the Department of Justice.

“A federal grand jury in Manhattan has issued an indictment today against Samuel Bankman-Fried, also known as SBF, aged 30, from Stanford, California. He faces charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission along with campaign finance violations,” stated the Department of Justice.

“The allegations in the indictment stem from a purported extensive scheme orchestrated by Bankman-Fried to misappropriate billions of dollars in customer deposits held by FTX, the global cryptocurrency exchange he established, while also misleading investors and lenders associated with FTX and Alameda Research, the cryptocurrency hedge fund he also founded. Bankman-Fried was apprehended yesterday in the Bahamas on these charges and is scheduled to appear before a Bahamian magistrate judge today,” it added.

“The Justice Department has initiated legal proceedings against Samuel Bankman-Fried, accusing him of engaging in a variety of offenses within a global scheme designed to mislead and defraud both customers and lenders associated with FTX and Alameda, the defendant’s cryptocurrency hedge fund, alongside a conspiracy to defraud the United States government,” stated Attorney General Merrick Garland. “We assert that the defendant conspired to deceive customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to breach campaign finance regulations. This indictment illustrates the U.S. Department of Justice’s commitment to thoroughly investigate and prosecute alleged criminal misconduct within the financial system and violations of federal election laws. We will persist in our efforts to ensure that U.S. capital markets function with honesty and uphold the integrity that investors, lenders, and the American populace deserve.”

“A month ago, FTX experienced a collapse, resulting in billions of dollars in losses for its customers, lenders, and investors,” remarked Damian Williams, the U.S. Attorney for the Southern District of New York. “Currently, a federal grand jury in New York has indicted the former founder and chief executive officer of FTX, charging him with crimes linked to the dramatic decline of that once-prominent cryptocurrency exchange, including fraud against customers, investors, lenders, and our campaign finance system. Today’s charges clearly indicate that this was not merely a situation of mismanagement or inadequate oversight, but rather a case of deliberate fraud, unequivocally.”

“As alleged in today’s indictment, Bankman-Fried intentionally defrauded the customers of FTX.com by misappropriating their deposits to cover expenses and debts of another company he owned, as well as to make other investments,” stated Assistant Director Michael J. Driscoll of the FBI New York Field Office. “If you engage in deception and fraud against your customers, the FBI will relentlessly pursue justice against you.”

According to the indictment, Bankman-Fried was the founder and CEO of FTX, an international cryptocurrency exchange. Since 2019, Bankman-Fried and his co-conspirators executed a scheme to defraud FTX customers by misappropriating billions of dollars from those customers’ funds. Allegedly, Bankman-Fried utilized billions of dollars of FTX customer funds for personal expenses, investments, and millions of dollars in political contributions to federal candidates and committees, as well as to repay billions in loans owed by Alameda Research, a cryptocurrency hedge fund also established by Bankman-Fried. Furthermore, it is alleged that Bankman-Fried deceived lenders to Alameda Research and equity investors in FTX by hiding his misuse of customer deposits in the financial information provided to them,” the press release stated.

“Bankman-Fried and his co-conspirators made millions in political contributions funded by Alameda Research to federal candidates and committees ahead of the 2022 election. To obscure the fact that these contributions were financed by corporate funds and to circumvent contribution limits and reporting obligations, Bankman-Fried directed that contributions be reported under the names of co-conspirators instead of the actual source of the funds,” it continued.

“Bank man-Fried faces two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each carrying a maximum penalty of 20 years in prison. He is also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years in prison. A federal district court judge will determine the sentence after evaluating the U.S. Sentencing Guidelines and other statutory considerations,” it concluded.