Sam Bankman-Fried Claims GOP Donations Triggered SEC Crackdown

TLDR

• SBF Blames Biden, Gensler for FTX Arrest, Cites Political Retaliation
• SBF Says GOP Donations Triggered FTX Arrest, DOJ Bias Alleged
• Gensler’s Phone Wipe Fuels SBF’s Claim of Political Targeting
• SBF Slams SEC, DOJ Over FTX Probe and “Politically Timed” Arrest
• Bankman-Fried Claims Political Bias Behind His 2022 FTX Arrest

Sam Bankman-Fried, founder of collapsed crypto platform FTX, has alleged that political bias led to his 2022 arrest. He claimed his move toward donating tens of millions to Republicans triggered action from the Biden-led Justice Department and SEC. He raised concerns that his arrest occurred just before he was scheduled to testify on crypto regulation before Congress.

Bankman-Fried argued that his political stance shifted between 2020 and 2022 following what he described as anti-crypto regulatory pressure. According to him, the Biden administration began targeting him after his financial support moved away from Democrats. He cited aggressive moves from then-SEC Chair Gary Gensler and federal prosecutors as retaliation.

He also referenced a critical crypto bill expected for vote, asserting the timing of his arrest was not coincidental. House Republicans previously questioned the timing, demanding internal communication records from the SEC and DOJ. SBF claimed those documents were later wiped from Gensler’s government-issued device.

Gensler’s Phone Wipe Draws Scrutiny

The SEC’s Office of Inspector General confirmed a wipe of Gensler’s phone erased key communications during the enforcement period. The deletion spanned October 2022 to September 2023, overlapping with FTX’s collapse and SBF’s arrest in the Bahamas. The report blamed automated IT policies and failure to sync the phone to SEC systems.

Congressional Republicans have since launched a formal inquiry into the SEC’s record-keeping failures. They raised concerns about transparency, mismanagement, and violations of federal documentation standards. Coinbase has also accused the agency of evidence destruction and called for accountability.

SBF’s allies argue that the lost messages could have provided insight into the SEC’s decisions during that volatile period. These gaps have only intensified claims that political considerations influenced regulatory timing. Supporters say the phone wipe raises questions about the legitimacy of the charges filed against Bankman-Fried.

Bankruptcy Process and Repayment Dispute Intensify

Bankman-Fried also criticized the ongoing FTX bankruptcy process, claiming it undervalued crypto assets at the time of collapse. He argued that the platform remained solvent and that customers should have received repayment in cryptocurrency. However, the bankruptcy team settled customer claims at market value in November 2022, when prices were low.

This decision, he said, blocked creditors from benefiting as Bitcoin rebounded in 2024. Some creditors echoed this concern, citing other cases, such as Genesis, where partial crypto repayments yielded better outcomes. They also raised objections to executive bonuses approved during the restructuring.

FTX’s new leadership defended their approach, citing fairness and asset stability as priorities in repayment. Yet SBF insisted the process ignored crypto-specific factors and harmed user outcomes. As the bankruptcy nears resolution, debates continue about whether the estate handled the repayment process equitably.

SBF Pushes Appeal Amid Ongoing Controversy

SBF is now serving a 25-year sentence following his conviction on fraud and conspiracy charges in November 2023. Prosecutors found he diverted billions in customer funds to Alameda Research for risky investments and personal spending. He continues to appeal the verdict, maintaining that political motives fueled his prosecution.

He claimed in recent posts that he cannot post directly but communicates through a friend via monitored channels. His recent activity has appeared on social media platforms like GETTR and X, intensifying debate around his case. His request for clemency from Donald Trump echoes earlier moves by crypto advocates.

Despite his conviction, SBF maintains that FTX’s failure was caused by regulatory pressure and post-collapse mismanagement. His legal team has not released new filings, but the appeal process is ongoing. His statements now form part of a broader clash between crypto stakeholders and federal regulators.

 

The post Sam Bankman-Fried Claims GOP Donations Triggered SEC Crackdown appeared first on CoinCentral.