elections

SBF prosecutors reportedly dig into donations made to top US Democrats

Democratic members from the DNC, the DCCC and Congressman Hakeem Jeffries were contacted by SBF prosecutors for information to aid their ongoing investigations.

The prosecutors investigating former FTX CEO Sam Bankman-Fried (SBF) have reportedly reached out to top members of the Democratic Party demanding information about the political donations made by the entrepreneur.

Democratic members from the United States Democratic National Committee (DNC), the Democratic Congressional Campaign Committee (DCCC) and Congressman Hakeem Jeffries were contacted by SBF prosecutors for information to aid their ongoing investigations, according to a New York Times report.

The United States attorney’s office for the Southern District of New York sent an email to the Democratic Party elections lawyer Marc Elias, asking for details on donations made by SBF. Similar emails were sent over to other members of the Democratic and Republican parties.

The Royal Bahamas police arrested SBF on Dec. 12 based on a request of the U.S. government, just a day before the accused was supposed to testify before Congress. The entrepreneur was charged with eight counts of financial and elections fraud, circling around the alleged siphoning of $1.8 billion in customer funds.

The ongoing investigations around SBF’s political donations gained attention as he was the Democrats’ second-largest individual donor, who shelled out $39.8 million.

Related: Sam Bankman-Fried seeks to reverse decision on contesting extradition: Report

On Dec. 17, three prominent Democratic groups — the DNC, the Democratic Senatorial Campaign Committee and the DCCC — have reportedly decided to return SBF-linked donations to FTX investors, which together exceed $1 million.

As previously reported by Cointelegraph, a DNC spokesperson confirmed the decision:

“Given the allegations around potential campaign finance violations by Bankman-Fried, we are setting aside funds in order to return the $815,000 in contributions since 2020. We will return as soon as we receive proper direction in the legal proceedings.”

The other two Committees, DSCC and DCCC, have also reportedly pledged to set aside $103,000 and $250,000 for reimbursement, respectively.

Elon Musk alleges SBF donated over $1B to Democrats: “Where did it go?”

SBF made the “highest ROI trade of all time” by donating $40 million to the right people for getting away with stealing over $10 billion, said Will Manidis, the CEO of ScienceIO.

The attempts of mainstream media to water down the frauds committed by FTX CEO Sam Bankman-Fried (SBF) did not fare well in convincing the crypto community and entrepreneurs. Instead, the misinformation campaign collided with Tesla CEO Elon Musk’s drive to position Twitter as “the most accurate source of information.”

The world is yet to overcome the shock after witnessing the legal leniency awarded to SBF for misappropriating users’ funds and shady investment practices via trading firms Alameda Research and FTX. Will Manidis, the CEO of ScienceIO, a healthcare data platform, pointed out that SBF made the “highest ROI trade of all time” by donating $40 million to the right people for getting away with stealing over $10 billion.

On the other hand, Musk alleged that SBF donated over $1 billion to Democratic candidates, which is way more than the publicly disclosed amount of $40 million. SBF previously admitted to making backdoor donations to the Democratic Party. Musk asked:

“His actual support of Dem elections is probably over $1B. The money went somewhere, so where did it go?”

The United States House Financial Services Committee chair Maxine Waters, a Democrat, and ranking member Patrick McHenry, a Republican, have requested SBF to appear in an investigative hearing scheduled for Dec. 13.

To this request, prominent entrepreneurs, including Polygon CEO Ryan Wyatt, informed Waters that “he’s (SBF) a criminal” after being shocked at the leniency shown by the people in power to the fugitive.

Related: FTX collapse drives curiosity around Sam Bankman-Fried, Google data shows

The crypto community openly criticizes paid narratives that try to show SBF in good light. The latest backlash is related to SBF’s interviews in New York Times DealBook Summit and Good Morning America interviews.

Speaking to the news outlets during the ‘apology tour,’ SBF portrayed himself as a victim and got applauded at the end. “Watching SBF’s interview is kind of like watching Casey Anthony’s documentary. They’re so mechanical, they’re so inauthentic in their delivery. If you feel any emotion, at all, it slows people down. The way it is expressed is a separate subjective matter,” said Twitter user and developer Naom.

Elon Musk alleges SBF donated over $1B to Democrats: ‘Where did it go?’

Some online are floating around theories that SBF will get away with misappropriating and losing user funds because of his large donations to politicians.

Many in the crypto space have accused mainstream media of intentionally trying to water down the actions of FTX CEO Sam “SBF” Bankman-Fried, including Tesla CEO Elon Musk, who is on a self-proclaimed mission to position Twitter as “the most accurate source of information.”

While the world still overcomes the shock of FTX’s collapse and the realization that SBF had been misappropriating users’ funds and engaging in shady investment practices via its sister trading firm, Will Manidis, CEO of ScienceIO — a healthcare data platform — tweeted that SBF made one of the “highest ROI trades of all time” by donating $40 million to the right politicians, who he claims have allowed him to get away with stealing over $10 billion.

Musk responded to the tweet, alleging that the amount of money SBF actually donated to Democratic candidates was over $1 billion, which would be way more than the publicly disclosed amount of $40 million. SBF previously admitted to making “dark” donations to the Republican Party. Musk asked:

“His actual support of Dem elections is probably over $1B. The money went somewhere, so where did it go?”

Meanwhile, United States House Financial Services Committee Chair Maxine Waters, a Democrat, and ranking member Patrick McHenry, a Republican, have requested that SBF appear in an investigative hearing scheduled for Dec. 13.

Polygon CEO Ryan Wyatt responded to Waters’ request by stating that “he’s [SBF] a criminal. What is happening.”

Related: FTX collapse drives curiosity around Sam Bankman-Fried, Google data shows

This latest round of backlash against SBF comes shortly after he gave interviews during The New York Times‘ DealBook Summit and to Good Morning America.

During his so-called “apology tour,” SBF has been portraying himself as a victim and even received a round of applause at the end of his DealBook Summit appearance. According to Twitter user and developer Naomi, “Watching SBF’s interview is kind of like watching Casey Anthony’s documentary. They’re so mechanical, they’re so inauthentic in their delivery. If you feel any emotion, at all, it slows people down. The way it is expressed is a separate subjective matter.”

Update (Dec. 5, 10:10 pm UTC): This article previously stated that Bankman-Fried admitted to giving backdoor donations to the Democratic Party. It has been updated to reflect that his dark donations went to the Republican Party.

Election tally: Does blockchain beat the ballot box?

With election integrity under assault in the United States and elsewhere, is blockchain technology part of the solution? Greenland explores voting options.

In October, Greenland was reported to be exploring the feasibility of an online voting platform for its national elections. Among the options being considered is a blockchain-based system. 

That isn’t entirely surprising. Electronic voting, or e-voting, has long been viewed as a promising use case for blockchain technology. “It’s time for online voting,” wrote Alex Tapscott in a New York Times opinion piece in 2018. “Using blockchain technology, online voting could boost voter participation and help restore the public’s trust in the electoral process and democracy.”

It seems especially timely now as large swaths of the world’s population are raising questions about election integrity — most notably in the United States, but in other countries as well, such as Brazil.

Tim Goggin, CEO at Horizon State, for one, believes that blockchain-enabled elections represent a “significant improvement” over the way most elections are operated today. Voting machines break down, software fails and election irregularities often create uncertainty and doubt among the voting public.

With a public blockchain, by comparison, “it is much easier for voters to trace their vote,” Goggin told Cointelegraph, “and audit an election themselves.”

Moreover, if something untoward does occur in the voting process, it is easier to identify it on a decentralized ledger with thousands of nodes than on current tabulation systems “where counting is done behind closed doors,” says Goggin, whose company set up a public election for South Australia in 2019, the first time blockchain technology was used in the voting process for that Australian state.

Still, blockchain technology’s potential vis-a-vis public elections has been highlighted off and on for some time now. No country has yet to use blockchain technology in a national election.

Marta Piekarska, senior DAO strategist at ConsenSys, recalls working at Hyperledger in 2016, where blockchain voting was discussed as a promising use case. “Six years later, and we are still talking about this,” she told Cointelegraph. “We are still quite far from a situation where any kind of distributed ledger would be considered” — at least in a national election. 

A few countries, notably Estonia, have been experimenting with systems that allow people to vote online, she further explained. On the other hand, “Netherlands abandoned the idea of doing electronic voting due to some of the concerns around security and authenticity of the votes.”

Then, there’s sparsely populated Greenland, where the vast distances make it difficult for people to vote in person. A group of researchers from Concordium Blockchain, Aarhus University, the Alexandra Institute and the IT University will soon be investigating “whether a blockchain-based system will be a more trustworthy e-election on the world’s largest island,” according to the Concordium press release.

Ensuring trust is critical

Any voting system requires trust, and trust requires a number of properties — any one of which can be a challenge depending on the circumstances, Kåre Kjelstrøm, chief technology officer at Concordium, told Cointelegraph. For in-person voting, these include: whitelisting: ensuring only eligible voters take part; identification: voters need to prove their identity when casting a vote; anonymity: votes are cast in private and can’t be traced back to the voter; security: locations are secured by the government; and immutability: cast votes can’t be altered.

“Any digital system that replaces a manual voting system needs to address at least those same issues to ensure trust and this has proven to be rather tricky to pull off,” Kjelstrøm explained. “But blockchain may prove to be part of a solution.”

A public decentralized blockchain ensures immutability by default, after all, “in that any transaction written can never be deleted.” The system is secured by cryptography and “transactions are anonymous, but are open for inspection by anyone in the world,” said Kjelstrøm, adding:

“The trick is to maintain privacy and anonymity while ensuring any eligible voter can only cast their vote once. […] This is a current research topic at top institutions.”

Permissioned or public chains?

“The main problems I see for public elections as opposed to say corporate governance is that there cannot be a permissionless [blockchain] system because voter information is private and we cannot trust all third parties,” Amrita Dhillon, professor of economics in the department of political economy at King’s College London, told Cointelegraph.

“The second problem is that of inputting the vote at a location of the voters choice: We cannot prevent anyone coercing voters at the point at which they submit the e-vote,” she added.

Recent: Is DOGE really worth the hype even after Musk’s Twitter buyout?

Others say permissioned chains aren’t the answer because they are run by a single entity or a group of entities that exert complete control of the system. “Worst case this means that a private blockchain can be tampered with by those self-same guardians and elections rigged,” said Kjelstrøm. This isn’t much of a problem in Western countries, “but in large parts of the world this is not true.”

On the other hand, if one can “weave self-sovereign identity (SSI) into the core protocol,” as Concordium, a layer-1 public blockchain, aspires to do, that “may be just the right technology to power public elections,” said Kjelstrøm.

That said, Goggin noted that many governments will probably opt to use private blockchains in line with their own privacy/data laws, and there are many ways to set up permissioned blockchains. But, if they don’t at least offer the public an auditable trace of voting records, then they aren’t likely to boost the public’s belief in election integrity. He calls himself “a big fan” of public and distributed blockchains.

The privacy question is especially knotty when it comes to public elections. “You should not be able to tell which candidate some individual voted for, or even if they voted at all,” wrote Vitalik Buterin in a blog titled “Blockchain voting is overrated among uninformed people but underrated among informed people.” On the other hand, you want to ensure — and if necessary prove — that only eligible voters have voted, so some information like addresses and citizen status may need to be collected. Buterin viewed encryption as a way to get around the privacy conundrum.

Goggin suggests something similar. Horizon State might ask a client to “hash,” i.e., encrypt or scramble, eligible voter identities “before we are provided them, and we then hash those identities again.” This means that neither the client nor Horizon State can readily determine who voted or how they voted. He added:

“Voters will be able to see their vote on the chain, but there is no way for voters to prove that it is their vote, given they can see other votes on the blockchain also.”

Dhillon, for her part, proposes a compromise where “some parts of the process are centralized,” i.e., voters come to a booth where their identity is checked and they submit their vote, “but subsequent parts of the chain can be decentralized to make them more secure and tamper proof.”

Technical limitations?

In 2014, the city of Moscow’s Active Citizen e-voting platform was created to let Muscovites have a say in non-political municipal decisions, and in 2017 it used the Ethereum blockchain for a series of polls. The largest of these tapped 220,000 citizens and the voting results were publicly auditable. It revealed some scaling limitations.

“The platform based on proof-of-work reached a peak of approximately 1,000 transactions per minute [16.7 transactions per second]. This meant that it would not be easy for the platform to handle the volume if a higher proportion of Moscow’s 12 million citizens participated in the voting,” according to Nir Kshetri, a professor at the Bryan School of Business and Economics at the University of North Carolina at Greensboro. From this, Kshetri and others concluded that this PoW version of the Ethereum blockchain “was not sufficient to handle national elections.”

Things might be different in 2023, however, when Ethereum 2.0 implements sharding. This could boost the chain’s speed to as high as 100,000 TPS, which in turn “increases Ethereum blockchain’s attractiveness for voting,” he told Cointelegraph.

But blockchains probably still need to be more secure before they are ready for public elections, though this is manageable in Kshetri’s view. “Blockchains are likely to become more secure with increasing maturity.”

Buterin, too, said in 2021 that security was still an issue vis-a-vis elections. For that reason, “in the short term, any form of blockchain voting should certainly remain confined to small experiments. […] Security is at present definitely not good enough to rely on computers for everything.”

Online transactions, unlike manual systems, “can occur in the blink of an eye,” added Kjelstrøm, and software-driven attacks on an e-voting system can “potentially foil or damage the system or the vote.” Therefore, “any new system would have to be introduced slowly to ensure the voting system remains intact and fully functional.” Governments might begin at a small scale and conduct proof-of-concepts for select non-critical elections first, he said.

Usability is critical 

Technology isn’t the only obstacle that needs to be solved before blockchain voting attains wide adoption. There are political and social challenges, too.

“The technology is there,” said Piekarska. “We can do it right now. I mean, decentralized autonomous organizations are governed through online voting now, and they are managing trillions of dollars.” But national elections are a different beast, she suggested, because:

“On the government level, your problem is: how do you create a system that is usable by citizens?” 

One’s constituency is not tech-savvy members of a DAO, “but people like my mom, who is still struggling with online banking,” Piekarska added.

How long will it be, then, before the first national election with blockchain voting? “Hopefully not decades, but surely we’re not there yet,” said Kjelstrøm.

“It could be tomorrow or it could be in 50 or 60 years,” opined Piekarska, “because there are so many things that need to align.” In Europe, most people trust their governments and the quality of voting is not really an issue, so the push for encrypted auditable ledgers may not be so urgent. In nations with weaker governance where elections are often manipulated, conversely, why would the powers-that-be ever consent to tamper-free blockchain voting?

Greenland, which struggles with participation in its general elections primarily because of the great distances that its citizens must travel to vote, might prove an exception.

“Yes, some solid governments want to do the right thing but they struggle with the accessibility of in-person voting,” Piekarska acknowledged. “That’s probably where we might see the first movers because there is a very high incentive for them to do it. But these are unique situations.”

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All in all, it’s critical that people have trust in their voting system, whether manual, electronic or blockchain-based, and building trust can take time. But, as more people become used to accessing public services online, electronic voting should take greater hold in different parts of the world, and once that happens, blockchain voting could catch on, given its well-documented advantages, allowing individuals to audit their own votes.

Large-scale blockchain-enabled national elections are probably some years away still. Even so, Goggin has been engaging in discussions recently “about providing elections at that scale,” adding:

“While it isn’t the norm yet, governments are beginning to consider the value that online blockchain voting systems can offer in efficiency, accessibility, speed, security and transparency.” 

Law Decoded, Nov. 7–14: How regulators reacted to the FTX crash

While some lawmakers expressed their eagerness to quick up the regulatory progress, others blamed the SEC in FTX’s monopoly.

Last week was tough — the alarming series of crypto meltdowns continued with the failure of FTX, one of the biggest exchanges on the market. The crypto industry’s very own “Lehman Brothers moment” pushed regulators to react. United States Senator Cynthia Lummis, famous for her openly pro-crypto position, promised deliberate with her colleagues on whether there was market manipulation, while Maxine Waters, chair of the United States House of Representatives Financial Services Committee, pushed for additional federal oversight of crypto trading platforms and consumer protection. 

European Parliament economics committee member Stefan Berger has compared the current situation with FTX to the 2008 financial crisis and said that the Market in Crypto Assets (MiCA) framework should prevent such crises in Europe. United States senators Debbie Stabenow and John Boozman have doubled down on their commitment to publishing a final version of the Digital Commodities Consumer Protection Act 2022.

Tom Emmer, the recently reelected Republican representative representing Minnesota’s 6th district in the United States House of Representatives, shocked the public with allegations that the Securities Exchange Commission (SEC) helped the FTX to obtain a “monopoly” in the U.S. Specifically, Emmer believes the SEC Chair Gary Gensler to be the one who was helping Sam Bankman-Fried and FTX “work on legal loopholes.” However, the lawmaker did not provide any evidence, claiming that his office is working on it.

The pro- and anti-crypto winners and losers from the U.S. midterms

Results from many election races for seats in the United States Senate and House of Representatives are still coming in, but a number of candidates who have expressed staunch views on digital asset regulation won on Nov. 8. Pro-crypto House incumbents including Minnesota Representative Tom Emmer and North Carolina Representative Patrick McHenry won re-election, as did crypto skeptic Brad Sherman in California. Democrat Tim Ryan lost on Nov. 8 to Republican J.D. Vance, who got more than 53% of the vote. Vance previously disclosed he held up to $250,000 in Bitcoin, while Ryan supported legislation aimed at simplifying digital asset tax reporting requirements.

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Middle East, Asia and Africa blockchain association launches in Abu Dhabi

A new blockchain and cryptocurrency-focused association has been launched within Abu Dhabi’s free economic zone to further the development of blockchain and crypto ecosystems across the Middle Eastern, North Africa and Asia regions. The Middle East, Africa & Asia Crypto & Blockchain Association will aim to facilitate regulatory solutions, create commercial opportunities and invest in education to support industry growth. The association will be spearheaded by board chairman Jehanzeb Awan, founder of an international risk and compliance consulting firm headquartered in Dubai.

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The Clearing House opposes CBDC in comments for U.S. Treasury

The Clearing House claims a central bank digital currency (CBDC) is “not in the national interest” of the U.S because the risks of the possible issuance outweigh the benefits. As the company, owned by 23 banks and payment companies, has written in its letter to a Treasury Department, “the foundational requirements in place to prevent criminal and illicit use of commercial bank money must be applied to a U.S. CBDC” should it become a reality. The Clearing House also called for a federal prudential framework with standards for digital assets service providers that are equivalent to those for depository financial institutions engaged in functionally similar activities.

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Post-election roundup: Who were the pro- and anti-crypto winners and losers from the US Midterms?

Political newcomer and Bitcoin holder J.D. Vance will take Rob Portman’s U.S. Senate seat in Ohio, but majority control of both chambers of Congress has yet to be decided.

Results from many election races for seats in the United States Senate and House of Representatives are still coming in, but a number of candidates who have expressed staunch views on digital asset regulation won on Nov. 8.

Some of crypto’s most outspoken supporters at the local and federal level, including Wyoming Senator Cynthia Lummis and Miami Mayor Francis Suarez, had no elections in November 2022, but others defended challenges to congressional seats with both narrow and wide margin victories. Pro-crypto House incumbents including Minnesota Representative Tom Emmer and North Carolina Representative Patrick McHenry won re-election, as did crypto skeptic Brad Sherman in California.

In Ohio, Rob Portman will be retiring from the U.S. Senate in January 2023, having said he would not be seeking re-election as it was “harder and harder to break through the partisan gridlock and make progress on substantive policy.” Portman was an advocate for many crypto-related pieces of legislation in the Senate, but both challengers to his seat expressed similar views. Democrat Tim Ryan lost on Nov. 8 to Republican J.D. Vance, who got more than 53% of the vote. Vance previously disclosed he held up to $250,000 in Bitcoin (BTC), while Ryan supported legislation aimed at simplifying digital asset tax reporting requirements.

On the gubernatorial level, Republican Governor Chris Sununu, who issued an executive order establishing a commission to study crypto in February, won re-election with more than 57% of the vote in New Hampshire. Democratic Governor Gavin Newsom, who signed an executive order in May aimed at harmonizing a regulatory framework for blockchain but also vetoed legislation establishing a licensing and regulatory framework for digital assets, won re-election in California by similar margins. In Texas, incumbent Governor Greg Abbott defeated Democratic challenger Beto O’Rourke. Abbott has described himself as a “crypto law proposal supporter,” supporting legislation recognizing digital assets under Texas commercial law.

At the time of publication, it is still unclear which political party will have majority control of the House and Senate starting in January. Democrats and Independents have held 50 seats in the Senate since the 2020 election and were able to flip the seat of Pennsylvania Senator Pat Toomey — also a crypto advocate — with the victory of John Fetterman in the midterm election. However, Georgia’s Senate race — a key state for majority control — may go to a runoff election between Democrat Raphael Warnock and Republican Herschel Walker.

“It’s not only the importance of which party wins each house of Congress, but then it gets down to the committee members,” Jeff Howard, North American head of business development at digital assets platform OSL, told Cointelegraph prior to Election Day. “The Republicans win, obviously [Patrick McHenry] is going to be the chairperson […] so I would see more bills coming out of the House than you’ve seen in the Democratically controlled House of Representatives.”

Related: 38% of US voters will consider candidates’ position on crypto in midterms: Survey

McHenry has been working with House of Representatives Financial Services chair Maxine Waters on legislation aimed at bringing regulator clarity to stablecoins, with some reports suggesting there was still a chance of the bill passing through Congress in 2022. Democrats will have majority control of the House and decisions on committee leadership until at least January 2023.

Single-issue crypto voters weigh in on midterms before US Election Day

The outcome of elections with pro- and anti-crypto political candidates could determine the future of digital asset legislation and regulation in the United States.

On Nov. 8, registered voters across the United States will cast ballots for political candidates to represent them at the local, state, and federal level — and for some people, crypto is the main issue.

Voters took to social media amid early voting in certain U.S. states and ahead of Election Day to proclaim that despite many of the issues driving people to the polls — including ensuring free and fair elections, gun control, and abortion — digital assets were at the forefront of their decision-making process. President Joe Biden’s term doesn’t end until January 2025, but the future majority control of both the House of Representatives and Senate currently hangs in the balance, with a number of openly pro-crypto candidates running.

“Two thoughts on my mind in the voter’s booth tomorrow,” said Twitter user MetaSailor. “1. What’s the candidate’s stance on Crypto? 2. What’s the candidate’s stance on decriminalizing Cannabis?”

Though many Republican lawmakers and those in their base have come out in support of crypto-related regulations and policies, promoting adoption or a framework for digital assets is not limited to one side of the political aisle. President Biden, a Democrat, signed an executive order establishing a regulatory framework for digital assets in March, and members of his party have worked with Republican lawmakers on stablecoin legislation.

“We need a few Dems and a few Republicans in Congress who want their States to be crypto friendly to pass a good bipartisan Bill that protects the rights of Americans to buy, sell, and hold crypto,” said Reddit user Invest07723.

Source: Twitter

Related: US election update: Where do the pro-crypto candidates stand ahead of the election?

“It’s the most consequential election that crypto has ever had,” Jeff Howard, North American head of business development at digital assets platform OSL, told Cointelegraph. “It will determine how crypto is regulated for many, many years to come.”

According to Howard, crypto has become a force to be reckoned with in elections due to a number of political action committees funding candidates and crypto groups becoming “a real voting block.” However, the party that assumes control of the House or Senate could influence ongoing legislation on digital assets in the United States:

“Democrats are more concerned about consumer protection and financial inclusiveness, where Republicans are more concerned about financial innovation and kind of a free market economy.”

A survey initiated by asset management firm Grayscale in October suggested that roughly a third of U.S. voters planned to consider political candidates’ positions on crypto in the midterm elections. According to a Nov. 4 CNN report, roughly 41 million people across 47 states participated in early voting, but the majority of these ballots came from voters over the age of 65.

Here’s what you should know about the upcoming US midterms: Law Decoded, Oct. 31–Nov. 7

Despite a common mantra about the nonpartisan nature of crypto, there are certain correlations evident ahead of the United States elections.

The United States will go to the voting booths on Nov. 8 to decide the fate of all 435 members of the House of Representatives and 34 out of the 100 Senate seats. The outcome will decide the prevailing power balance in Washington and has the potential to affect the crypto industry. Perhaps that’s why 38% of eligible voters will consider candidates’ positions on crypto, according to a recent survey. Another survey suggests that crypto regulation is a bipartisan issue, with 87% of Democratic and 76% of Republican respondents saying they want clarity from the U.S. government on digital assets.

Fundraising is a normal part of the American political system, but the numbers associated with crypto may have raised some eyebrows. Sam Bankman-Fried called $1 billion his “soft ceiling” for 2022 election contributions, for example. Even though he backpedaled on some of his intentions, he remains the sixth-largest donor in this election cycle. There are numerous crypto-related political action committees as well. According to some reports, crypto-affiliated donors have spent more than major mainstream lobbies like defense and Big Pharma.

With the nonpartisan nature of crypto being somewhat of a cliche, there are clear signs of political divisions. First, crypto tends to skew to the Right. An analysis of legislators’ agendas shows that Republicans are generally way more friendly to digital assets. Why? Read Cointelegraph’s full review of the upcoming midterm elections and their relation to crypto.

Digital yuan will offer “controllable anonymity”

Chinese central bank governor Yi Gang claimed that while the country moves forward with adopting its central bank digital currency (CBDC) — the digital yuan — privacy protection remains “on the top of the issue.” He went on to describe the two-layer payment system that will offer controllable anonymity to users. At tier one, the central bank supplies digital yuan to the authorized operators and processes interinstitutional transaction information only. At tier two, the authorized operators only collect the personal information necessary for their exchange and circulation services to the public.

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South Korean prosecutors accuse Do Kwon of manipulating LUNA’s price

Another week, another update on Terra’s founder and his adventures. This time, South Korean prosecutors have obtained evidence to suggest that Do Kwon once ordered an employee to manipulate the price of LUNA, since rebranded Luna Classic (LUNC). The reported evidence came in the form of a “messenger” conversation between Kwon and the former Terraform Labs employee. Meanwhile, Kwon continues to deny all allegations and move across the globe. Previous reports have suggested that he first moved from South Korea to Singapore before transitioning to Dubai. It’s now believed he might be residing somewhere in Europe without a valid passport. 

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12 independent entities pledge legal support for Ripple

Ripple is garnering more support from the crypto and finance industry in its ongoing battle with the United States Securities and Exchange Commission. The number of companies, developers, exchanges, associations and investors filing amicus briefs for the firm has reached 12. Among them, you can find such industry heavyweights as Coinbase, the Chamber of Digital Commerce, the Crypto Council for Innovation, the Blockchain Association, Valhil Capital, I-Remit, Spend The Bits, Tapjets, the Investor Choice Advocates Network and John Deaton.

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IRS prepares for an increase in crypto cases in the upcoming tax season

The United States Internal Revenue Service’s criminal investigation division is ramping up for tax season, with its sights set on the crypto community. Division Chief Jim Lee said it is preparing “hundreds” of crypto-involved cases, many of which will soon be available to the public. Lee said that in the last three years, there has been a major shift in digital asset investigations conducted by the IRS. Previously, these investigations were mostly money laundering-related; whereas now, tax-related cases make up nearly half. This includes what is often called “off-ramping” transactions where digital assets are exchanged for a fiat currency, along with not reporting crypto payments.

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SBF has been a ‘significant donor’ in the US midterm elections

The FTX founder has reportedly spent almost $40 million mainly supporting Democrats during the current political cycle, according to Open Secrets.

Crypto billionaire and FTX founder Sam Bankman-Fried have admitted to being a “significant donor” to both sides of the political spectrum ahead of the 2022 midterm elections.

Days ahead of the U.S. midterm elections on Nov. 8, SBF told his Twitter followers that he has given contributions to electoral campaigns on both sides of the fence.

The crypto billionaire said that he has been “supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC,” as well as “working with them to support permissionless finance.”

SBF added that working with FTX Digital Markets co-CEO Ryan Salame, he has signed up campaigns to accept crypto “and gave some, including millions to Senate and House Republicans.”

Earlier this year, Cointelegraph reported that SBF was planning to spend up to a billion dollars to help influence 2024 presidential election campaigns. His real plan is to bankroll the candidate running against former president Donald Trump. In 2020, SBF donated $5.2 million to the Joe Biden presidential campaign.

According to Open Secrets, a platform following the money in politics, SBF is the sixth largest political contributor. The platform reports that he has made a total contribution of $39.8 million for the 2021-2022 cycle.

Of that total, 92% has gone to the Democrats with the remainder going to Republican candidates and campaigns. FTX co-CEO Salame favors the red side of the political divide, donating $23.6 million to Republican campaigns for the current cycle.

The top political contributor was billionaire investor George Soros who has pledged $128.5 million to the democrats. Billionaire venture capitalist Peter Thiel, who has backed several crypto startups, was ninth on the list with $32.6 million for the Republicans.

Related: US Election update: Where do the pro-crypto candidates stand ahead of the election?

Bankman-Fried also backs the political action committee (PAC) Protect Our Future, which was set up in January 2022 and has spent more than $9 million to support Democrat candidates.

Crypto has become a point of contention in the midterms with a larger tech and crypto-savvy voter base now having a say. According to a recent survey by fund manager Grayscale, 38% of respondents will be “considering crypto policy positions” when choosing their candidates.

SBF has been a ‘significant donor’ in the US midterm elections

The FTX founder has reportedly spent almost $40 million mainly supporting Democrats during the current political cycle, according to Open Secrets.

Crypto billionaire and FTX founder Sam Bankman-Fried have admitted to being a “significant donor” to both sides of the political spectrum ahead of the 2022 midterm elections.

Days ahead of the United States midterm elections on Nov. 8, SBF told his Twitter followers that he has given contributions to electoral campaigns on both sides of the fence.

The crypto billionaire said that he has been “supporting constructive candidates across the aisle to prevent pandemics and bring a bipartisan climate to DC,” as well as “working with them to support permissionless finance.”

SBF added that working with FTX Digital Markets co-CEO Ryan Salame, he has signed up campaigns to accept crypto “and gave some, including millions to Senate and House Republicans.”

Earlier this year, Cointelegraph reported that SBF was planning to spend up to one billion dollars to help influence 2024 presidential election campaigns. His real plan is to bankroll the candidate running against former president Donald Trump. In 2020, SBF donated $5.2 million to the Joe Biden presidential campaign.

According to Open Secrets, a platform following the money in politics, SBF is the sixth largest political contributor. The platform reports that he has made a total contribution of $39.8 million for the 2021-2022 cycle.

Of that total, 92% has gone to the Democrats, with the remainder going to Republican candidates and campaigns. FTX co-CEO Salame favors the red side of the political divide, donating $23.6 million to Republican campaigns for the current cycle.

The top political contributor was billionaire investor George Soros, who has pledged $128.5 million to the Democrats. Billionaire venture capitalist Peter Thiel, who has backed several crypto startups, was ninth on the list with $32.6 million for the Republicans.

Related: US Election update: Where do the pro-crypto candidates stand ahead of the election?

Bankman-Fried also backs the political action committee (PAC) Protect Our Future, which was set up in January 2022 and has spent more than $9 million to support Democrat candidates.

Crypto has become a point of contention in the midterms, with a larger tech and crypto-savvy voter base now having a say. According to a recent survey by fund manager Grayscale, 38% of respondents will be “considering crypto policy positions” when choosing their candidates.