Sam Bankman-Fried previously claimed that all of his Republican donations "were dark" to cryptocurrency blogger Tiffany Fong. So, what is dark money? We are here to explain it, and about SBF making dark money.
A watchdog group has called for a probe into Sam Bankman-political Fried's contributions after the former CEO of FTX allegedly acknowledged making illegal under-the-table contributions to Republicans totaling tens of millions of dollars.
What Is Dark Money?
Voters have a right to be aware of anyone attempting to sway their decision or exert influence on our government.
The free and fair operation of our democracy depends on transparency regarding the sources of funding for our elections, the candidates running, and the manner in which that money is spent.
However, covert spending, or spending for which the true source (ie, the person making the expenditure) is unknown, is increasingly roiling our elections. What is dark money? "Dark money" refers to wealthy special interests spending covertly during our elections.
Dark money typically influences our elections through covert contributions made to 501(c)(4) social welfare organizations or 501(c)(6) trade associations, which bear the names of the Internal Revenue Code sections that allow them tax-exempt status. Study up on these kinds of organizations.
They are not obligated to publicly reveal their funders, and are sometimes referred to as "issue advocacy" or "dark money" groups.
How Did SBF Admit Making Dark Money?
The Federal Election Commission (FEC) received a complaint from Citizens for Responsibility and Ethics in Washington (CREW) on December 8 alleged remarks made by Bankman-Fried in an interview with bitcoin YouTuber Tiffany Fong on November 16 that was made public on YouTube on November 29.
The Federal Election Campaign Act, which mandates the disclosure of political donations of over $200 annually, was allegedly violated "directly and seriously" by Bankman-Fried, according to the group.
Bankman-Fried claimed to have "donated roughly the same to both parties" in the conversation with Fong on November 16. According to OpenSecrets, he was the second highest donor to the Democrats, therefore it appears that these "secret" donations involved a considerable sum of money.
SBF reported that "all my Republican donations were dark."
Summary
So, this is how SBF confirmed his dark money on politics. And this is the answer for “What is Dark Money?”
