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      Sam Bankman-Fried and Allies’ Political Donations Under Scrutiny by US

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      Federal prosecutors appear to be focusing on possible wrongdoing by cryptocurrency executives, rather than by Democratic or Republican politicians. But the inquiries widen an explosive campaign finance scandal.WASHINGTON — Federal prosecutors in Manhattan are seeking information from Democrats and Republicans about donations from the disgraced cryptocurrency entrepreneur Sam Bankman-Fried and two former executives at the companies he co-founded.In the days after Mr. Bankman-Fried was arrested on Monday and charged with violations including a major campaign finance scheme, the prosecutors reached out to representatives for campaigns and committees that had received millions of dollars from Mr. Bankman-Fried, his colleagues and their companies.A law firm representing some of the most important Democratic political organizations — including the party’s official campaign arms, its biggest super PACs and the campaigns of high-profile politicians such as Representative Hakeem Jeffries — received an email from a prosecutor in the United States attorney’s office for the Southern District of New York. The email sought information about donations from Mr. Bankman-Fried, his colleagues and companies, according to people familiar with the request, who insisted on anonymity to discuss an ongoing law enforcement matter.The prosecutors have reached out to representatives of other Democratic campaigns that received money linked to the cryptocurrency exchange FTX, which Mr. Bankman-Fried co-founded, according to two other people familiar with the matter. Prosecutors are also investigating donations to Republican campaigns and committees by another FTX executive who was a top financier on the right, according to a person familiar with the situation.So far, Mr. Bankman-Fried is the only executive to face charges. Since emerging as a leading political megadonor in the months before the 2020 election, he has donated nearly $45 million, primarily to Democratic campaigns and committees that are now scrambling to distance themselves.There has not been any suggestion that political campaigns and groups engaged in wrongdoing related to the donations they received. The Justice Department’s inquiries appear to be an effort to gather evidence against Mr. Bankman-Fried and other former FTX executives, rather than against their political beneficiaries.But the prosecutors’ requests widen what has quickly become one of the biggest campaign finance scandals in years, as both Democrats and Republicans grapple with questions about their eagerness to tap into a stream of cash from a murky and largely unregulated industry that emerged suddenly as a powerful political player.The fallout has been swift and is only growing, as lawmakers, operatives for political action committees and their lawyers try to minimize the damage.Some politicians — including Mr. Jeffries, the incoming Democratic leader in the House, and Representative-elect Aaron Bean, a Republican from Florida — either returned donations linked to FTX or gave the money to charity after the company became embroiled in scandal. Other groups say they are setting the cash aside for possible restitution to victims of the alleged scheme.Prosecutors said FTX was a “house of cards” through which Mr. Bankman-Fried and others diverted customer money to buy expensive real estate in the Bahamas, invest in other cryptocurrency firms, provide themselves with personal loans and make political contributions of tens of millions of dollars intended to influence policy decisions on cryptocurrency and other issues.What to Know About the Collapse of FTXCard 1 of 5What is FTX? More

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      Restaurateur, Political Donor, Tipster: The Many Roles of FTX’s Ryan Salame

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      The co-chief executive of an FTX unit who told regulators about wrongdoing at the exchange was a big Republican donor. He also bought restaurants.In Western Massachusetts, Ryan Salame was known as a local boy turned hometown hero who struck gold as a top executive at FTX, the now-collapsed cryptocurrency exchange, and used some of that wealth to buy a few small restaurants in the area.In Washington, D.C., Mr. Salame was hailed as a “budding Republican megadonor,” bankrolling candidates and political action committees, and establishing FTX’s presence as a crypto heavyweight invested in shaping the regulation of the nascent industry.Now, Mr. Salame has emerged as a central player in the scandal surrounding FTX after he told regulators in the Bahamas, where the exchange was based, that FTX was misappropriating billions in customer funds to prop up an allied crypto trading firm called Alameda Research.On Monday, Sam Bankman-Fried, the founder of FTX, was arrested in the Bahamas, accused of lying to investors, lenders and customers about the close financial dealings between FTX and Alameda, and committing fraud by using both companies as a “piggy bank.” Prosecutors said Mr. Bankman-Fried used customer funds to trade, buy expensive real estate, invest in other crypto firms, make political contributions and extend personal loans to executives.So far, Mr. Bankman-Fried, who is being held without bail in a Bahamas prison, is the only FTX executive charged with wrongdoing. But Damian Williams, the U.S. attorney for the Southern District of New York in Manhattan, said the investigation is continuing and prosecutors are not done charging individuals.Mr. Salame’s activities may be scrutinized, given that he was pivotal to FTX’s political influence operation along with Mr. Bankman-Fried. Mr. Salame, a former co-chief executive of FTX Digital Markets, the company’s subsidiary in the Bahamas, also received a $55 million personal loan from Alameda.Mr. Salame (pronounced Salem) did not return multiple requests for comment. His lawyer, Jason Linder at Mayer Brown, also did not return requests for comment.Born in Sandisfield, Mass., a town of just 1,000 people in the Berkshires, Mr. Salame worked briefly at the accounting giant EY. In 2019, he graduated from Georgetown University with a master’s in finance before landing a job at Alameda in Hong Kong. He later moved to FTX in the Bahamas, where he was a primary point of contact between the exchange and the local government.Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, was arrested in the Bahamas on Monday.Mario Duncanson/Agence France-Presse — Getty ImagesMr. Salame was not in Mr. Bankman-Fried’s inner circle, but he was fiercely loyal to him, according to people familiar with the matter. Mr. Bankman-Fried and his closest advisers all shared a purported commitment to giving away most of the money they made under the banner of “effective altruism.”By contrast, Mr. Salame said at times that he was in crypto because it was a way to get rich, according to a person who knows him. He enjoyed expensive cars, flew on private jets and had a reputation for hard partying.What to Know About the Collapse of FTXCard 1 of 5What is FTX? More

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      Warnock’s Narrow Victory Over Walker in Georgia

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      More from our inbox:Trump’s Very Bad DayThe Crypto IllusionEncourage BreastfeedingFood Buying That Reflects Our Values Nicole Craine for The New York TimesTo the Editor:Re “Warnock Victory Hands Democrats 51st Seat in Senate” (front page, Dec. 7):Although I am relieved that Senator Raphael Warnock prevailed in the Georgia runoff, I am absolutely disgusted that this election was so close.We have lost our way as a country when we do not see that political leadership takes skill; knowledge of the law, the Constitution and history; the ability to negotiate and cooperate; and a worldview that is larger than your own.I would not be at all qualified to play professional football, and it was clear from the start that Herschel Walker did not have the knowledge or skill to be a U.S. senator.Dawn MenkenPortland, Ore.The writer is the author of “Facilitating a More Perfect Union: A Guide for Politicians and Leaders.”To the Editor:I have new respect for Herschel Walker: He gave a concession speech. He declared that he lost. He called on his supporters to respect their elected officials and to believe in America. He said he had no excuses for his loss because he put up a good fight. This probably reflects both who he is and his football heritage — you win but also lose games fair and square.He may have helped us back to the old pre-Trump norms. We may disagree with his views and abhor his scandals, but the most important thing is that he believes in democracy. Let’s hope Donald Trump watched that concession speech.When Mr. Walker said, “I want you to believe in America and continue to believe in the Constitution and believe in our elected officials most of all,” it could be the biggest takeaway of the election.James AdlerCambridge, Mass.To the Editor:Raphael Warnock was extremely lucky to win the Senate race in Georgia — lucky because he faced an opponent plagued by ignorance, myriad character flaws and an endorsement by Donald Trump. Almost certainly, a moderate Republican, Black or white, could have defeated Mr. Warnock, perhaps by a margin as large as the seven-plus percentage points that Brian Kemp scored over Stacey Abrams for the Georgia governorship just four weeks earlier.I am very happy about Mr. Warnock’s win, but it should not be interpreted as signaling a major shift in the political landscape of Georgia.Peter S. AllenProvidence, R.I.To the Editor:Every time the Republicans lose an election — most recently Tuesday in Georgia — the Times coverage predicts that the party will engage in “soul-searching,” suggesting that the G.O.P. has a desire to change course. Yet, again and again, the party persists in its pandering to far-right, anti-democratic forces of white nationalism and heteropatriarchy.The G.O.P. has made its soul abundantly clear. Perhaps some Republican voters have done their own soul-searching and decided to reject what their party has become.Pamela J. GriffithBrooklynTo the Editor:As a liberal Democrat I am very pleased with the results of the Georgia runoff and most of the rest of the 2022 U.S. Senate results in competitive races. How do we make sure that Donald Trump continues to influence the choice of Republican candidates for Senate in 2024?Michael G. RaitenBoynton Beach, Fla.Trump’s Very Bad Day Jamie Kelter Davis for The New York TimesTo the Editor:Tuesday was a Trumpian negative hat trick: a defeat in the Senate runoff in Georgia, the conviction of the Trump Organization on tax fraud and other crimes, and a report of grand jury subpoenas from the special counsel to local officials in Arizona, Michigan and Wisconsin.Of course the Republican Party has neglected to take any prior offramps to dump Donald Trump, most notably Jan. 6, so unfortunately the latest Trump failures will probably go by the wayside too. And the G.O.P. of yore — the party of Lincoln, T.R. and Ike — will continue to be the clown car it has become.Bill MutterperlBeverly Hills, Calif.The Crypto IllusionFederal authorities are trying to determine whether criminal charges should be filed against the founder of the crypto firm FTX, Sam Bankman-Fried, and others over the company’s collapse.Winnie Au for The New York TimesTo the Editor:Re “‘It Just Angers Me.’ Crypto Crisis Drains Small Investors’ Savings” (front page, Dec. 6):Is it too early, or far too late, to suggest that “if it sounds too good to be true, it probably is” in relation to the FTX and BlockFi difficulties? Should this concern be extended to Bitcoin and cryptocurrencies in general?There was a time when people earned the coins in their wallets from the sweat on their brow rather than from a computer program most people can’t understand that creates imaginary coins to be stored in wallets that seem easy to rob or lose. It is, however, sad to read of people who have lost so much in such a short time.As a teacher, I wasn’t that well paid, and so I saved as much as I could to buy a house and set myself up for retirement by sensible, boring approaches. But the gains to be made from Bitcoin are in its questionable uses or in realizing the increase in its value before it drops. For me it seems to have no actual value or use, and I doubt that I am the only one who thinks that.It’s time for me to forget the world of imaginary computer profits and go back to a boring life on my unicorn farm.Dennis FitzgeraldMelbourne, AustraliaEncourage Breastfeeding Vanessa Leroy for The New York TimesTo the Editor:Re “What It Really Takes to Breastfeed a Baby” (news article, Dec. 6):As a pediatrician who spends many hours with new mothers and their babies discussing the challenges and difficulties that come with breastfeeding, I felt that this article was not as positive as it should have been. It focused on following mothers who were having a hard time keeping up their breastfeeding.These days, any literature or news related to breastfeeding should only be encouraging new mothers to breastfeed, not scaring them away from doing it and making it sound so hard while working and raising other children.In my practice, I share my own personal experiences of breastfeeding my three children, each for a year, while working in a busy pediatrics office. My stories are useful and effective in making the breastfeeding experience achievable to the new moms I meet.We need to reverse the steady decline of breastfeeding mothers in this country.Naomi JackmanPort Washington, N.Y.Food Buying That Reflects Our Values Pavel PopovTo the Editor:Re “Help Black Farmers This Holiday Season,” by Tressie McMillan Cottom (column, Nov. 30):New York State’s food procurement laws are an extension of the disenfranchisement of Black farmers. Provisions require that municipalities contract with farmers who sell their produce at the “lowest” cost. This often comes at the expense of small, hyperlocal farmers and bars them from entering negotiations for public contracts — meaning that opportunities to support historically marginalized food producers are currently limited in New York.The Good Food New York bill would democratize local food purchasing decisions by allowing municipalities to galvanize around racial equity, animal welfare, environmental sustainability, nutrition, local economies and workers’ rights — and contract with producers that uphold these values.It is more critical than ever to rectify the wrongs of this country’s past and prepare for a future where the strength of our food systems and supply chains will be tested by the consequences of climate change. New York State legislators, we are counting on you to make the right decision for our food futures.Ribka GetachewTaylor PateNew YorkThe writers are, respectively, director and campaign manager of the NY Good Food Purchasing Program Campaign for Community Food Advocates. More

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      Outside Money Floods New York Congressional Races

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      In a feverish House race across Manhattan, a dark-money super PAC has spent more than $200,000 reminding voters that an incumbent congresswoman, Carolyn Maloney, once indulged doubts about vaccines.Out east in Suffolk County, cryptocurrency interests have spent more than $1 million on ads disparaging a former Navy officer in a Republican primary for Congress and supporting his opponent, a cryptocurrency booster, according to AdImpact, an ad tracking firm.And in the city’s northern suburbs, a police union PAC has spent more than $200,000 on ads calling a Democratic candidate a “radical extremist” who “left her community crime-ridden.” Those grim warnings, delivered over a soundtrack of gunshots, breaking glass and crackling fire, target a state senator, Alessandra Biaggi, and benefit her opponent in the 17th Congressional District, Representative Sean Patrick Maloney, the chair of the Democratic Congressional Campaign Committee.A rising tide of lightly regulated outside money is pouring into New York State: As of Thursday, with the Aug. 23 primary date looming, outside entities have spent about $9 million in state congressional primaries, according to data maintained by Open Secrets, a government transparency group. In 2018, outside entities spent roughly $2.6 million.Some of the players are familiar, including real estate and police groups. Others, like the super PAC targeting Ms. Maloney in the 12th District, have yet to identify their donors. The treasurer for that PAC, Brandon Philipczyk, did not respond to requests for comment. Berlin Rosen, a New York consultancy, is also involved.The thrust of the ad campaign taking aim at Ms. Maloney mirrors the messaging that her chief primary opponent, Representative Jerrold Nadler, has put in his campaign website’s so-called red box. Campaigns use language hidden in such boxes on their websites to communicate indirectly with super PACs that might support them.A spokesman for the Nadler campaign declined to comment.“I am disappointed that my colleague and friend, Congressman Nadler, has resorted to using dark-money funded attack ads against me to mislead voters in a desperate attempt to win this election,” Ms. Maloney said in a statement that also apologized for her past remarks on vaccines. “Voters are used to seeing these kinds of dirty campaign tactics from Republicans, but I expected more of Congressman Nadler.”In New York City’s other marquee House primary contest, for the 10th Congressional District encompassing parts of Brooklyn and Lower Manhattan, money also looms as a factor, but much of it is coming directly from one of the leading candidates, Daniel Goldman.Mr. Goldman, the heir to the Levi Strauss fortune who prosecuted the first impeachment case against Donald J. Trump, has put at least $4 million of his own money into the race.Daniel Goldman has put at least $4 million of his own money into the race for Congress in the 10th District.Anna Moneymaker/The New York TimesBut super PAC money is also playing a role in the race. A new super PAC called New York Progressive, Inc. has begun distributing literature targeting Yuh-Line Niou, a left-leaning state assemblywoman, for opposing an affordable housing development for seniors — part of a $225,000 expenditure. The treasurer of the PAC, Jeffrey Leb, typically raises money for such efforts from real estate interests. He declined to comment.And on Thursday, a super PAC called Nuestro PAC announced it would spend half a million dollars on behalf of one of Ms. Niou’s rivals, Carlina Rivera.North of the city, Mr. Maloney is benefiting from expenditures by the Police Benevolent Association of the City of New York, which endorsed Mr. Trump’s re-election campaign. More

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      The Business Rules the Trump Administration Is Racing to Finish

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      #masthead-section-label, #masthead-bar-one { display: none }The Jobs CrisisCurrent Unemployment RateThe First Six MonthsPermanent LayoffsWhen a $600 Lifeline EndedAdvertisementContinue reading the main storySupported byContinue reading the main storyThe Business Rules the Trump Administration Is Racing to FinishFrom tariffs and trade to the status of Uber drivers, regulators are trying to install new rules or reduce regulations before President-elect Joe Biden takes over.President Trump is rushing to put into effect new economic regulations and executive orders before his term comes to a close.Credit…Erin Schaff/The New York TimesJan. 11, 2021, 3:00 a.m. ETIn the remaining days of his administration, President Trump is rushing to put into effect a raft of new regulations and executive orders that are intended to put his stamp on business, trade and the economy.Previous presidents in their final term have used the period between the election and the inauguration to take last-minute actions to extend and seal their agendas. Some of the changes are clearly aimed at making it harder, at least for a time, for the next administration to pursue its goals.Of course, President-elect Joseph R. Biden Jr. could issue new executive orders to overturn Mr. Trump’s. And Democrats in Congress, who will control the House and the Senate, could use the Congressional Review Act to quickly reverse regulatory actions from as far back as late August.Here are some of the things that Mr. Trump and his appointees have done or are trying to do before Mr. Biden’s inauguration on Jan. 20. — Peter EavisProhibiting Chinese apps and other products. Mr. Trump signed an executive order on Tuesday banning transactions with eight Chinese software applications, including Alipay. It was the latest escalation of the president’s economic war with China. Details and the start of the ban will fall to Mr. Biden, who could decide not to follow through on the idea. Separately, the Trump administration has also banned the import of some cotton from the Xinjiang region, where China has detained vast numbers of people who are members of ethnic minorities and forced them to work in fields and factories. In another move, the administration prohibited several Chinese companies, including the chip maker SMIC and the drone maker DJI, from buying American products. The administration is weighing further restrictions on China in its final days, including adding Alibaba and Tencent to a list of companies with ties to the Chinese military, a designation that would prevent Americans from investing in those businesses. — Ana SwansonDefining gig workers as contractors. The Labor Department on Wednesday released the final version of a rule that could classify millions of workers in industries like construction, cleaning and the gig economy as contractors rather than employees, another step toward endorsing the business practices of companies like Uber and Lyft. — Noam ScheiberTrimming social media’s legal shield. The Trump administration recently filed a petition asking the Federal Communications Commission to narrow its interpretation of a powerful legal shield for social media platforms like Facebook and YouTube. If the commission doesn’t act before Inauguration Day, the matter will land in the desk of whomever Mr. Biden picks to lead the agency. — David McCabeTaking the tech giants to court. The Federal Trade Commission filed an antitrust suit against Facebook in December, two months after the Justice Department sued Google. Mr. Biden’s appointees will have to decide how best to move forward with the cases. — David McCabeAdding new cryptocurrency disclosure requirements. The Treasury Department late last month proposed new reporting requirements that it said were intended to prevent money laundering for certain cryptocurrency transactions. It gave only 15 days — over the holidays — for public comment. Lawmakers and digital currency enthusiasts wrote to the Treasury secretary, Steven Mnuchin, to protest and won a short extension. But opponents of the proposed rule say the process and substance are flawed, arguing that the requirement would hinder innovation, and are likely to challenge it in court. — Ephrat LivniLimiting banks on social and environmental issues. The Office of the Comptroller of the Currency is rushing a proposed rule that would ban banks from not lending to certain kinds of businesses, like those in the fossil fuel industry, on environmental or social grounds. The regulator unveiled the proposal on Nov. 20 and limited the time it would accept comments to six weeks despite the interruptions of the holidays. — Emily FlitterOverhauling rules on banks and underserved communities. The Office of the Comptroller of the Currency is also proposing new guidelines on how banks can measure their activities to get credit for fulfilling their obligations under the Community Reinvestment Act, an anti-redlining law that forces them to do business in poor and minority communities. The agency rewrote some of the rules in May, but other regulators — the Federal Reserve and the Federal Deposit Insurance Corporation — did not sign on. — Emily FlitterInsuring “hot money” deposits. On Dec. 15, the F.D.I.C. expanded the eligibility of brokered deposits for insurance coverage. These deposits are infusions of cash into a bank in exchange for a high interest rate, but are known as “hot money” because the clients can move the deposits from bank to bank for higher returns. Critics say the change could put the insurance fund at risk. F.D.I.C. officials said the new rule was needed to “modernize” the brokered deposits system. — Emily FlitterNarrowing regulatory authority over airlines. The Department of Transportation in December authorized a rule, sought by airlines and travel agents, that limits the department’s authority over the industry by defining what constitutes an unfair and deceptive practice. Consumer groups widely opposed the rule. Airlines argued that the rule would limit regulatory overreach. And the department said the definitions it used were in line with its past practice. — Niraj ChokshiRolling back a light bulb rule. The Department of Energy has moved to block a rule that would phase out incandescent light bulbs, which people and businesses have increasingly been replacing with much more efficient LED and compact fluorescent bulbs. The energy secretary, Dan Brouillette, a former auto industry lobbyist, said in December that the Trump administration did not want to limit consumer choice. The rule had been slated to go into effect on Jan. 1 and was required by a law passed in 2007. — Ivan PennAdvertisementContinue reading the main story More