House Democrat Overseeing Crypto Hired FTX Chief’s Brother

A Democrat who sits on the Home Monetary Providers Committee employed the brother of the top of the bankrupt cryptocurrency firm FTX, probably elevating moral questions. 

Gabe Bankman-Fried, the youthful brother of  FTX CEO Samuel Bankman-Fried, went to work in January 2019 for Rep. Sean Casten, D-Sick. 

Casten, then a freshman congressman, was named that very same month to the Home Monetary Providers Committee, which oversees regulation of cryptocurrency and hedge funds, amongst different issues. 

Gabe Bankman-Fried remained employed for 2 years on the Home employees, in response to his LinkedIn profile. The web site Legistorm, which tracks members of Congress and their staffers, says he labored for Casten.  

The Los Angeles Times, NBC News, Politico and different information organizations have reported that Sam Bankman-Fried, 30, is Gabe Bankman-Fried’s older brother. 

Gabe Bankman-Fried is now director of Guarding Against Pandemics, an organization created by his brother Sam in 2020 to foyer Congress to assist $30 billion in pandemic prevention included within the Biden administration-backed infrastructure laws. The group deliberate to spend $128,000 on TV and digital adverts within the Washington metropolitan space.

The Day by day Sign contacted Guarding Towards Pandemics searching for remark from Gabe Bankman-Fried about his employment with Casten, however he had not responded as of publication time. 

FTX, based in Could 2019 by Samuel Bankman-Fried and Gary Wang, additionally didn’t reply to e-mail inquiries from The Day by day Sign. 

Samuel Bankman-Fried and others additionally based the hedge fund Alameda Analysis in 2017.

The Home Monetary Providers Committee, which has included Casten since January 2019, oversees regulation and legal guidelines governing cryptocurrency corporations resembling FTX and hedge funds resembling Alameda, a accountability that raises moral questions for Casten. 

On Friday, Sam Bankman-Fried resigned as chief govt officer of FTX and the corporate filed for Chapter 11 chapter safety in Delaware, Bloomberg and different retailers reported

Sam Bankman-Fried, who donated nearly $127 million to Democrat candidates and liberal causes through the midterm cycle, reportedly misplaced $16 billion in per week. He made a person contribution of $2,800 to Joe Biden’s 2020 presidential marketing campaign. 

Alameda, the hedge fund, did nearly all of its buying and selling on the FTX cryptocurrency trade and reportedly was financed with shopper funds from FTX.

The Day by day Sign and The Heritage Basis’s Oversight Venture requested Casten’s spokesperson, Jacob Vurpillat, whether or not the congressman met with or obtained donations from FTX or every other cryptocurrency firm. (The Day by day Sign is Heritage’s multimedia information group.)

Casten’s spokesman didn’t reply to e-mail or cellphone inquiries Monday by publication time. We additionally reached out Tuesday to Casten via a Twitter direct message, however didn’t get a response. 

We made inquiries by e-mail asking whether or not moral limitations concerning interactions with cryptocurrency corporations had been positioned on Casten or Gabe Bankman-Fried, who was employed by Casten as a legislative correspondent from January 2019 via February 2021. 

Sometimes in authorities, when an obvious battle of curiosity arises involving a relative with whom a authorities worker has an in depth relationship, that worker or authorities workplace would search counsel from a lawyer concerning moral points.  

We additionally requested Casten’s spokesperson whether or not the congressman met with Treasury Division officers and mentioned FTX or every other cryptocurrency corporations. 

The Day by day Sign emailed the Home Monetary Providers Committee to ask whether or not Chairwoman Maxine Waters, D-Calif., was conscious of Gabe Bankman-Fried’s employment with Casten and his brother’s place main FTX.

If Waters was conscious of that employment, we requested, had been any limitations positioned on Casten, his workplace, or Gabe Bankman-Fried? We additionally requested whether or not committee employees met with representatives of FTX, Alameda Analysis, or every other cryptocurrency corporations from January 2019 till now. 

In a public statement Thursday, Waters stated the Monetary Providers Committee has investigated cryptocurrency for 4 years. The California Democrat stated she has labored with rating member Rep. Patrick McHenry, R-N.C., to ascertain a “federal framework for steady cash.” 

Waters’ assertion didn’t handle employment of the brother of FTX’s chief govt officer by Casten, a committee member. 

“Now greater than ever,” she stated, “it’s clear that there are main penalties when cryptocurrency entities function with out sturdy federal oversight and protections for patrons.”

Fred Lucas and Ken McIntyre contributed to this report. 

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