The recent downfall of cryptocurrency demagogue Sam Bankman-Fried has highlighted the potentially fraught nature of the crypto markets in general. More specifically, questions are being raised about his relationship to the democratic party as well as purported donations to Ukraine in an alleged money laundering scheme. Let’s see what Ron from Crypto Lists thinks.

It’s a foregone conclusion that one of the biggest crypto stories in recent times involves the downfall of FTX and its CEO Sam Bankman-Fried. As the aftershocks throughout the cryptocurrency markets continue, eyes have now begun to focus upon his relationship with the democratic party and even Ukraine. What allegations are circulating and how might these affect the future of the markets as a whole? Let’s try to separate the wheat from the chaff.

Bankman-Fried and the Democrats: Bosom Buddies

It is no secret that Bankman-Fried has been a long-term pundit of the democratic party. We are not only referring to public support in this case. Analysts at Fox News claim that he funnelled a staggering $127 million dollars into the recent midterm campaigns (1). This number was only superseded by George Soros.

Now, there is nothing overtly wrong with this position. After all, we need to remember the amount of money spent by former president Donald Trump in relation to supporting his Republican cronies. The issue instead revolves around another venture taken by Bankman-Fried in recent times and how it casts what can only be called a questionable light on his actions…

Where Does Ukraine Fit into the Picture?

All eyes have recently been focused upon the bankruptcy of the once seemingly indestructible FTX crypto exchange. Having said this, other information has come to light; particularly the relationship between FTX, the Ministry of Digital Transformation of Ukraine and a Ukrainian-based staking service platform known as Everstake. So, what’s the connection?

Some sources claim that Bankman-Fried used FTX to funnel crypto donations directly to the Bank of Ukraine in order to support the war effort. As you might have imagined, this raised several eyebrows. Not only must we wonder whether or not these transfers impacted the overall solvency of FTX, but why would a nation in the midst of an era-defining conflict dabble with assets that are known for a certain degree of volatility?

Republicans have raised the possibility that Bankman-Fried then channeled Ukraine-backed FTX funds into the democratic midterm campaign. If proven true, this would equate to nothing less than a shady situation bordering on money laundering. Ukrainian officials flatly deny such an accusation; instead saying that the fundraising campaign was used to convert crypto-backed donations into fiat currency (2).

Rating: 9.17/10
Supply: 76,310,896,640 / 32,297,366,522
Release date: June 10, 2014

Description: Buy Tether, the biggest stablecoin in the world!

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.


Playing the Devil’s Advocate

For the sake of argument, let’s assume for a moment that the allegations outlined above are substantiated. What might this signal for Bankman-Fried, the democrats and cryptocurrencies as a whole? One major step would involve taking an in-depth look at the balance sheets of FTX and the former CEO himself. However, this might represent the tip of the proverbial iceberg.

It is likely that Republicans would ask for a closer examination of democratic midterm donations; especially where these funds originated. If it were found that they were sent to the Ukraine-backed FTX offshoot and then liquidated in order to avoid financial reporting before sending them back to the States, questions would naturally arise in regard to the 2022 midterms themselves.

All politics aside, government-backed regulatory bodies such as the SEC would be placed under immense pressure to further clamp down on crypto trading techniques. There’s no doubt that such a move would place even more of a damper upon already sluggish markets.

Fact as Opposed to Fiction

Still, we need to remember that words such as alleged and claimed have appeared throughout this article. In other words, there’s a big difference between what someone believes and what can actually be proven. Let’s also point out that some of those who claim that Bankman-Fried and the democrats colluded to launder money via Ukraine-based crypto funds are some of the very same who stubbornly refuse to believe that Donald Trump lost the 2020 election.

The bottom line is that this is a late-breaking story and tangible conclusions have yet to emerge. Unfortunately, it’s a foregone conclusion that these recent revelations could very well wreak further havoc within a crypto landscape that has already endured a fair share of turmoil in recent times.


Get Capital


Rating: 9.56/10
Number of instruments: 414+ instruments

Description: Capital is one of the largest sites with a huge range of trading options. Sign up today!

Risk warning: 81.4% of retail investor accounts lose money when trading with Capital.


Sources:

1. https://www.foxnews.com/politics/troubled-crypto-boss-sam-bankman-fried-lost-15b-week-funneled-millions-dems-far-left-causes
2. https://twitter.com/abornyakov/status/1592241279051743233

Editor’s note: the views expressed in this piece are the author’s own and do not necessarily reflect that of CryptoLists.com

Tether Newsflash
    Tether swaps Solana for EthereumTether swaps Solana for Ethereum
    Saturday, 19 Nov 2022 10:20 am
    Tether has announced a $1bn USDT swap, moving a massive amount of coins from the Solana network over to Ethereum. This on-chain swap (which are used to move USDT from one blockchain to another) has likely been prompted by the ongoing issues surrounding Solana in the wake of the FTX and Alameda meltdown. But with ambitious plans ahead, Crypto Lists isn't writing off SOL just yet. If you want to get involved when the prices are super low, then Sign up for MEXC Global he...
    Read the full newsflash


    USDT and USDC on Solana back on trackUSDT and USDC on Solana back on track
    Thursday, 17 Nov 2022 11:24 pm
    While Binance is under investigation and is 'a walking time bomb' according to Nouriel Roubini, CZ made sure that USDT and USDC transactions over the Solana network on Binance were temporarily suspended for three hours, between 12:05 and 15:05. Crypto Lists speculate that the downtime was due to some trading tick size adjustments, something that OKX did two days ago. Circle, the organisation behind USDC, was quick to...
    Read the full newsflash


    USDT and other stablecoins begin to settleUSDT and other stablecoins begin to settle
    Friday, 11 Nov 2022 4:43 am
    Due to the commotion with FTX, lots of stablecoins depegged slightly, but the volatility seems to have settled somewhat. Markets have recovered slightly since the events of Tuesday and Wednesday, with a 5% gain in market cap overall.Time will tell whether we're set for another fluctuation. USDT and others remain good options for those wishing to wait to enter the market when prices are suitably low. If you want to begin your journey into crypto, you can Sign up for eToro here...
    Read the full newsflash


    Tether launching GBP-pegged stablecoin GBPT in JulyTether launching GBP-pegged stablecoin GBPT in July
    Wednesday, 22 Jun 2022 12:26 pm
    Just a few days after Circle announcing the release of EUROC, Tether counters with launching a sterling based stablecoin. Similar to USDT, the name for the upcoming release will be GBPT and it is pegged 1:1 against the British pound. In early July you can expect to be able to spread your exchange rate risk with having GBPT in your crypto wallet. Sites such as Kucoin (review) will have it and you can sign-up for a free Kucoin account here...
    Read the full newsflash


    Kucoin release Luna 2.0 futures: LUNA/USDTKucoin release Luna 2.0 futures: LUNA/USDT
    Tuesday, 31 May 2022 5:45 pm
    For those into leverage trading, that is now possible with Luna 2.0 and Tether (USDT) through Kucoin (review). You can set the leverage between 1x (so no leverage) up to 20x. You can go both long and short in Luna 2.0 and if setting a take profit and stop-loss, it's simple to handle the position. Kucoin shows the amount of long and short positions, that varies constantly. While writing this - 60% are long in LUNA and 40% are short. Keen on trying? Sign-up for Kucoin today and give...
    Read the full newsflash

Recent crypto sites
Recent crypto coins
CryptoLists.com
Copyright © 2019-2022, by Crypto Lists Ltd (CryptoLists.com). Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top