{"id":975340,"date":"2023-01-30T22:19:54","date_gmt":"2023-01-30T22:19:54","guid":{"rendered":"https:\/\/theintercept.com\/?p=420559"},"modified":"2023-01-30T22:19:54","modified_gmt":"2023-01-30T22:19:54","slug":"new-ftx-filing-pulls-back-the-curtain-on-sam-bankman-frieds-massive-influence-peddling-operation","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2023\/01\/30\/new-ftx-filing-pulls-back-the-curtain-on-sam-bankman-frieds-massive-influence-peddling-operation\/","title":{"rendered":"New FTX Filing Pulls Back the Curtain on Sam Bankman-Fried\u2019s Massive Influence Peddling Operation"},"content":{"rendered":"
A filing in<\/u> FTX\u2019s bankruptcy proceedings is shedding light on the true extent of the crypto-trading powerhouse\u2019s influence peddling operation. Last week, FTX filed its creditor matrix, a document that lists former vendors and investors to the company.<\/p>\n
The list includes nearly a dozen public relations experts \u2014 specialists who generate positive spin in the media on behalf of clients \u2014 as well as political consultants, think tanks, and trade groups.<\/p>\n
Sometimes, the money went directly to political operations; Majority Forward, a dark-money group designed to elect Senate Democrats, received cash. In some cases, the hired guns, such as PR firms, were paid directly for their services. In others, the groups that received donations maintain that they are independent, but had interests aligned with FTX.<\/p>\n
The filing, for instance, listed a donation to the Center for a New American Security, a prominent national security-focused think tank in Washington, D.C., that has worked to shape crypto regulations.<\/p>\n
The filing offered a look under the hood of FTX\u2019s intricate maze of influence. On the heels of its meteoric rise as a crypto exchange, FTX quickly began to spend extraordinary amounts of money to buy prestige and friends in high places. Now that the firm stands accused of siphoning off billions of its investors\u2019 dollars \u2014 with its disgraced founder Sam Bankman-Fried charged with fraud in the matter \u2014 increased scrutiny is falling on powerbrokers\u2019 dealings with FTX.<\/p>\n
The relationships of many of the entities listed in the bankruptcy filing and FTX were already known \u2014 the company complied with lobbying disclosures for some of its consultants \u2014 but the creditor matrix shows the crypto giant also retained several previously undisclosed professional influence peddlers.<\/p>\n
One seasoned political hand tied to FTX without any disclosures is former New York City Council Speaker Corey Johnson. His firm, Cojo Strategies, is featured in the FTX vendor list. Another is Susan McCue, a former aide to Sen. Harry Reid, D-Nev., who has advised many Senate Democrats and played a role in the leadership of several Democratic super PACs and dark-money outfits. Her firm,\u00a0Message Global, is in the filing.<\/p>\n
Other consulting firms with a finger on the pulse of power are sprawled through the creditor matrix, which runs over 116 pages. Another creditor, Patomak Global Partners, a firm that specializes in influencing financial regulators, is led by Paul Atkins, a former Securities and Exchange commissioner. Atkins\u2019s company touts its roster of former government officials as providing \u201ca telescope to anticipate trends on the horizon to help position our clients for long-term success.\u201d (Neither Johnson, McCue, nor Patomak responded to requests for comment.)<\/p>\n
The donation to CNAS \u2014 a powerful think tank with ties to both political parties but known for staffing national security roles in Democratic administrations \u2014 came at a time when the organization advocated for crypto regulations with a light touch.<\/p>\n
\u201cTo compete in the digital-economy race with China, the United States must foster a more innovative fintech environment,\u201d CNAS fellow Yaya J. Fanusie said in testimony to the Senate Finance Committee on July 14, 2021. \u201cIf U.S. securities regulation does not evolve to account for the new technical and entrepreneurial capabilities offered by blockchain technology and broadcast data transmission, the United States could be hamstrung in a data revolution that is only just beginning.\u201d<\/p>\n\n