Prosecutors probing former FTX CEO Sam Bankman-Fried (SBF) have reportedly reached out to prominent Democratic Party figures, asking for information about the entrepreneur's campaign donations.
The ongoing investigations into SBF's political donations drew attention because he was the Democrats' second-largest individual donor, with $39.8 million in contributions.
According to a New York Times report, SBF prosecutors approached Democratic members of the United States Democratic National Committee (DNC), the Democratic Congressional Campaign Committee (DCCC), and Congressman Hakeem Jeffries for information to aid their ongoing investigations.
The Democratic Party's elections attorney Marc Elias received an email from the Southern District of New York's U.S. Attorney's office requesting more information on SBF's donations. Other Democratic and Republican party members also received similar emails.
SBF was placed under arrest by the Royal Bahamas police on Dec. 12 at the U.S. government's request, one day before the suspect was scheduled to appear before Congress. The businessman was accused of siphoning off $1.8 billion in customer payments and was charged with eight counts of financial and election fraud.
The charges in the indictment relate to the operation of FTX and Alameda Research as well as SBF's political activity. The charges in the eighth count include breaking contribution laws, hindering the Federal Election Commission's responsibilities, making contributions in the name of others, and making contributions to organizations that are forbidden from doing so by federal law.
If that is not practicable, the U.S. will "seek forfeiture of any other property of the defendant up to the value of the above forfeitable property."
The indictment names only SBF, although it also alludes to "individuals known and unknown."
On Dec. 17, three important Democratic organizations - the DNC, the Democratic Senatorial Campaign Committee, and the DCCC - reportedly resolved to return SBF-related funds to FTX investors totaling more than $1 million.
"Given the allegations around potential campaign finance violations by Bankman-Fried, we are setting aside funds in order to return the $815,000 in contributions since 2020," a DNC spokesperson confirmed. "We will return as soon as we receive proper direction in the legal proceedings."
According to reports, the other two Committees, DSCC and DCCC, have also agreed to set aside $103,000 and $250,000, respectively, for reimbursement.
