Disgraced DOJ unit appointed to investigate FTX money laundering scandal

The Justice Department’s Southern District of New York (SDNY) has been appointed to investigate the collapse of a major cryptocurrency company which has revealed a possible link between taxpayer-funded Ukraine aid and Democratic political campaigns and causes. 

Up until last week, FTX was considered the third-largest cryptocurrency exchange in the world, valued at over $30 billion. But a sudden liquidity crisis sent the company into a tailspin, causing customers to withdraw billions of dollars. 

Over a billion dollars has reportedly gone missing, and FTX’s 30-year-old founder Sam Bankman-Fried lost his $15 billion fortune in two days.  

But more than being a 30-year-old billionaire, Bankman-Fried was one of the Democratic Party’s largest megadonors, second only to George Soros. Since founding FTX in 2019, Bankman-Fried has donated over $40 million to Democratic campaigns and causes, including key lawmakers in the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), who are charged with regulating the crypto industry. In May, Bankman-Fried said he was willing to spend over $1 billion to keep Democrats in the White House in 2024. 

Another one of Bankman-Fried's projects was Aid for Ukraine, an organization set up by the Ukraine government to accept donations in cryptocurrency. Bankman-Fried's FTX converted those donations into fiat currency, ostensibly by storing the cryptocurrencies on its own exchange.  

Reports are now alleging a laundering loop involving Democrat-pushed aid to Ukraine, Ukrainian involvement in FTX, and FTX’s heavy donations to Democratic congressional campaigns and causes.  

Now the Wall Street Journal reports that the Justice Department’s Southern District of New York (SDNY) has been appointed to investigate FTX. 

SDNY was the subject of its own scandal earlier this year when it was discovered to have illegally spied on conservative guerilla journalism group Project Veritas. The FBI raided the homes of eight journalists from the organization, seizing their personal hardware and communications, which they then handed to SDNY.  

Though SDNY was ordered by a federal court judge to pause its review of Project Veritas’ communications, SDNY misled the court about its surveillance of Project Veritas and their internal communications and lied to the court by omission. 

The raid on the homes of the Project Veritas journalists sparked shock within the U.S. government. At least five US senators sent letters to Attorney General Merrick Garland and Rep. Madison Cawthorn (R-NC) delivered scathing remarks to House Speaker Nancy Pelosi on the House floor. Even Left-wing news outlet Politico blasted the move. 

The appointment of SDNY to investigate the FTX debacle raises questions about whether the DOJ division will be objective in its findings, or whether it intends to find anything at all. 

FTX was listed as a partner company of the World Economic Forum, though the globalist organization has since scrubbed any mention of FTX from its website.