The Chair of the House Financial Services Committee stated that she would initiate an investigation into the collapse of FTX in order to “examine exactly what happened.”
Maxine Waters, the Chair of this Committee, is the problem. Waters would be the least qualified person to conduct an honest and transparent investigation of any matter, particularly considering the involvement of the Democrats in FTX.
What can we do to tell if things aren’t going as planned?
Hillary Vaughn (Fox Business reporter) asked Waters if Democrats who received campaign money from FTX ought to return it. Waters replied:
— The Free Speech Forum (@TFSF_) November 17, 2022
“Well, that’s something I don’t want to do. Both Republicans and Democrats have received donations. So, thank you. She stated that she would reach out to “both sides” and not just focus on Democratic issues. This should not be considered a reason to not “get in that.”
Sam Bankman-Fried founded the bankrupt crypto-exchange FTX. During the midterm elections, he contributed heavily to Democratic candidates. His donations went through a lesser-known political action committee.
Federal Election Commission filings show that Bankman-Fried donated nearly $38 million to various candidates and political parties in 2021-2022, according to FEC. His cash was mostly donated to Democratic candidates and left-wing organizations. But, most of his political donations went towards the Protect Our Future PAC. This group was established in January. It is dedicated to supporting candidates who are committed to preventing future pandemics.
FEC records indicate that Bankman-Fried wired $9m to the PAC in February shortly after it was created. He made three additional donations totaling $18m between March and June.
The Daily Beast reached more than 25 legislators that received the money. Some stated that they would donate the money to charity. Others said they used the money to support Democratic candidates. Some people didn’t reply at all.
Among the Democrats who received money through FTX was
Rep. Jesus Garcia, D-Ill., and Reps.-elect Morgan McGarvey of Kentucky, Maxwell Frost of Florida, Sydney Kamlager of California, Jonathan Jackson of Illinois, Nikki Budzinski of Illinois, Jared Moskowitz of Florida, and Rob Menendez Jr. of New Jersey.
Joe Biden’s 2020 presidential campaign was also funded by Bankman-Fried, with $5.2 million.
Waters claimed that FTX caused more than a billion users harm. “Unfortunately, this is only one example of how cryptocurrency platforms have fallen in the last year. ”
Rep. Patrick McHenry (R.NC), who is the ranking member, will hopefully also be reviewing the Democratic accountability. It is unlikely that Waters will be in charge for January.
Many lawmakers were still in touch with Sam Bankman-Fried. People started posting photos of Waters on Twitter immediately, including one showing her kissing him.
🚨🚨Rep. Maxine Waters announces a HEARING scheduled for December about the collapse of FTX.
Also pictured: Maxine Waters being buddy-ol’-pals with Sam Bankman-Fried pic.twitter.com/Z7l24OwtGY
— Crab Man (@crabcrawler1) November 16, 2022
Maxine Waters to hold hearing Into FTX collapse pic.twitter.com/s2Gt37DJfx
— Clown World ™ 🤡 (@ClownWorld_) November 17, 2022
At a previous Congressional hearing last year, Rep. Maxine Waters blew Sam Bankman-Fried a kiss. SBF is now set to appear before her next month to answer questions about FTX. pic.twitter.com/XqiV0t7oDm
— Ian Miles Cheong (@stillgray) November 17, 2022
These Democratic connections pose a serious problem.
Do we have the ability to take a hard look at it? Are there any underlying issues? Is it right for her to resign? It is difficult because of the fact that results can only be achieved through congressional hearings. It raises more questions, however, because of the Democratic involvement.