Sam Bankman-Fried’s dad allegedly had advisory role at Dem ‘dark money network’

Joseph Bankman, the father of embattled former cryptocurrency entrepreneur Sam Bankman Fried, allegedly served in an advisory role in the Democratic Party’s top dark money network, but the watchdog said it “deserves intense scrutiny.”

The allegations come after Bankman Fried’s former company, FTX, said Monday that his parents “abused their access and influence within the FTX companies to directly and indirectly amass millions of dollars in wealth.” The company’s lawyers wrote that the disclosure was made in a lawsuit filed against the parents. . FTX is try to get money back to pay off debts borrowed.

Bankman Fried, a Stanford University law professor, “was a member of Arabella Advisors’ advisory board,” according to the complaint.

Arabella Advisors, a Washington, D.C.-based consulting firm, manages a nonprofit network that provides financial assistance to dozens of left-wing groups.

Funds managed by the firm, including New Venture Fund, Sixteen Thirty Fund, Windward Fund and Hopewell Fund, have collectively been raising money for more than a year. Billions of dollars in anonymous cash Every year, we funnel money to liberal causes and initiatives across the country.

Sam Bankman-Freed’s father, Joseph Bankman, leaves the court last month.

“You can tell a lot about a person by the type of company they run,” said Caitlin Sutherland, executive director of Americans for Public Trust. “It’s not at all surprising to learn of the connection to the Sam Bankman Freed scandal.” he told FOX News Digital. “This arrangement deserves serious consideration, especially the extent to which SBF sought to leverage political influence through America’s most powerful liberal dark money network.”

Steve Sampson, a spokesman for Arabella Advisors, said Mr. Bankman “has never held any role” at the company.

According to court documents, FTX previously transferred $8 million to the New Venture Fund, which is controlled by Arabella. FTX’s lawyers, who are suing Bankman and his wife Barbara Fried, appear to have incorrectly written that Bankman had an advisory role at the company.

Sam Bankman Freed
Caitlin Sutherland, executive director of Americans for Public Trust, said, “Learning about the Arabella Advisors Network’s connection to the Sam Bankman Freed scandal is not at all surprising.” .
John Nation/Shutterstock

A spokesperson for New Venture Fund said: “We work with the FTX Foundation to provide management services for some of our grants,” adding that Bankman’s position falls under that umbrella project and that he has no relationship with the company. He said he is affiliated with the company.

“In early 2022, NVF issued grants from a project advised by Mr. Bankman and in partnership with the FTX Foundation, all of which went to carefully vetted charities addressing environmental issues and hunger.” said a foundation spokesperson. “This is a pending legal matter and any remaining money will be returned based on the resolution of that proceeding.”

Parker Thayer, a researcher at the Capitol Research Center, said the fund’s promise to return “FTX’s ill-gotten gains” was “too little too late” and “particularly in the face of other lawsuits.” “This is a serious indictment of their credibility.” Alleges discrimination and retaliation against employees who raised concerns about unethical partisan conduct that may violate IRS law. ”

barbara freed
FTX is suing Joseph Freed and Barbara Freed.
Brigid Stelzer

FTX’s lawyers and bankers did not respond to requests for comment.

“The accusations against Sam Bankman Fried’s parents that they made millions of dollars from their son’s bankrupt cryptocurrency business and funneled dark money to liberal causes through Arabella are based on accusations that Sam Bankman Freed’s parents, both Stanford law professors, “This suggests that he may be guilty of conspiracy, banking, and election law crimes,” Paul Kamener, an adviser at the National Law and Policy Center, told Fox News Digital.

FTX filed for bankruptcy in November after running out of funds due to a virtual currency run. At the same time, customers questioned the company’s financial strength and sought to withdraw their assets. Bankman Freed is charged with seven crimes, including fraud and money laundering.

Bankman Freed was a great supporter of Democratic causes. During the midterm elections, he challenged liberal political action committees and organizations to liberal financial king george soros.

Bankman Fried’s charity, the FTX Foundation, dedicated to combating climate change and other global health issues, has since been dissolved.

The group has supported CarbonPlan and Giving Green, two climate change initiatives dedicated to achieving a so-called green transition from fossil fuels, and the Good Food Institute, an organization promoting the expansion of plant-based meat .

Fox News Digital’s Louis Casiano and Thomas Catenacci contributed to this report.

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