(Daily Caller News Foundation) A crypto exchange company that became one of the largest Democratic donors was sold Tuesday after seeing nearly $6 billion in withdrawals, according to Fox News.
FTX, owned by Sam Bankman-Fried, reported nearly $6 billion in withdrawals 72 hours before the Nov. 8 midterm elections and opted to sell the company to crypto rival Changpeng Zhao, owner of the crypto company Binance, according to Fox News. Zhao told Reuters that FTX signed a nonbonding agreement Tuesday hoping to cover a “liquidity crunch.”
“This is a truly crazy event in the startup world. Dot-com bust level event,” tech reporter Eric Newcomer tweeted regarding the sale.
Bankman-Fried was the second largest Democratic donor in the 2022 election cycle, contributing $39,826,856 to campaigns, according to Fox News. He donated $36,793,956 to Democratic candidates and $235,200 to Republican candidates.
In 2020, Bankman-Fried donated $10 million to President Joe Biden’s campaigns and stated he could spend anywhere from $100 million to $1 billion in the 2024 election, according to Fox News. Bankman-Fried later retracted his statement in October, saying it “was a dumb quote on my part.”
Bankman-Fried’s net worth of $16 billion was “eviscerated” in days, according to Bloomberg. The crypto exchange co-founder is currently “on the brink of a 94% wealth wipeout,” following the deal with Zhao.
“Crypto has a way of humbling people who swagger too heavily,” Consumer Choice Center (CCC) cryptocurrency watchdog Yaël Ossowski told The Washington Free Beacon.
“The days of Sam Bankman-Fried being a heavyweight Democratic fundraiser and political influencer to the benefit of his own exchange and his connected companies, are basically over.”