FTX, Bankman-Fried and the Chicago connection.
I’m writing from Chicago on Christmas eve morning where the air temp is in the single digits and the wind chill is minus 30 degrees.
It’s been a relatively quiet news week especially for local political stories. The Chicago mayor’s race and ward elections will move to a higher gear after the first of the year.
The story that will likely be a big 0ne is the Chicago/Sam Bankman-Fried connection.
The FTX founder and two other top executives at the bankrupt crypto empire have lavished $76.1 million on super-PACs and other political committees in recent years.
That spending is part of the eight criminal counts of the Justice Department’s indictment, which accuses the former billionaire of conspiring with other unnamed individuals to use corporate money and shadow donors starting in 2020 to contribute to political campaigns.
Among Chicago and Illinois political figures who were the recipients of Bankman-Fried’s largesse include Congressman Jesus Chuy Garcia, two newly elected Democratic members of Congress, Jonathan Jackson of Chicago and Nikki Budzinski of Springfield and Chicago Alder Gilbert Villegas, 36th, who ran for Congress but lost in the Democratic primary.
The donations to Chuy are notable since he received over $200,000 from Bankman-Fried in a race where he ran for congress unopposed and also for the fact that he sits on the House panel that deals with proposals to regulate cryptocurrency.
It’s not a good look.
It is concerning to me since I live in Congressman Garcia’s district, supported him when he ran for Congress and when he ran against Rahm Emanuel for Chicago Mayor.
This time I’m supporting the incumbent Mayor Lori Lightfoot.
Manhattan US Attorney Damian Williams said that Bankman-Frid’s scheme involved dirty money that was used to buy bipartisan influence and impact public policy in Washington.
Bankman-Fried also is charged with wire fraud and conspiracy.
All my paintings and drawings can be found on Instagram @klonskyart