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The SBF Scandal: The Players and the Money

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From the Brownstone Institute

BY Jeffrey A. TuckerJEFFREY A. TUCKER

The complexities of the FTX scandal with Sam Bankman-Fried at the helm boggles the mind. Unlike the Madoff scandal, which was incredibly simple, the funding, influence, and political networks sounding the $32 billion collapse of FTX is byzantine by design.

Just have a look at the org chart of the company to get a sense. It’s all the better for avoiding oversight.

What we really need in the months or even years in which it will take to sort all of this out is some kind of key to the major players. What follows is a list which we’ve put together in order of network importance for easy reference. This small effort is made necessary because there seems to be very little attention being given to the entire SBF empire, both in terms of the players with whom he worked and where the money ended up.

It’s nowhere near being a guide to the fullness of the networks of funding and influence, and can only begin to hint at the real story of what was really behind this magic bean factory in the Bahamas. Their operations and networks are deliberately obscure and fan out over many countries, institutions, and individuals. There is a strange silence in the air about the details other than the general observation that Sam Bankman-Fried was up to no good.

And yet there were obviously many people involved. It’s probable that the main point was to fund political causes in a way that gets around federal election law, as the indictment suggests in count eight. However, a close examination of the networks keeps coming back to the strange theme of pandemic planning and support for various methods of controlling the population in the name of controlling infectious disease. Aside from political donations, this was a central concern. What that has to do with a crypto exchange is another matter.

All of which should raise a question given the time of the life of FTX (2019-2022): to what extent was the network surrounding this institution useful in providing back-channel funding support for (and lack of opposition to) the most unprecedented attack on human liberty in our lifetimes? This question applies to both the direct political contributions and the various other donations to institutions and individuals.

Corrections to this list are welcome.

Family

Sam Bankman-Fried: Went to MIT, worked for Centre for Effective Altruism (fundraising 2017) and started Alameda Research in November 2017, and then the crypto trading company FTX two years later, which he ran until 2022 when it all collapsed after becoming the second-largest donor to Democrats ($38M).

Barbara Helen Fried: mother of Sam, Harvard Law graduate, professor at Stanford University, booster of Effective Altruism, and founder of Mind the Gap, a secretive political action committee in Silicon Valley.

Alan Joseph Bankman: father of Sam, Yale Law graduate and later clinical psychologist, law professor at Stanford, and author and expert on tax law.

Linda Fried: Sam’s aunt on his mother’s side and Dean of School of Public Health at Columbia University and on the board of the World Economic Forum’s Global Agenda Council on Aging.

Gabriel Bankman-Fried: Sam’s brother who ran Guarding Against Pandemics, a lobbying organization supporting “pandemic planning” also known as lockdowns and vaccine mandates. It has a Capitol Hill headquarters that cost $3.3 million. He previously served on a Congressional staff.

Associates

Caroline Ellison: Schooled at Stanford, she is daughter of Glenn Ellison and Sara Fisher Ellison, both professors at MIT. She became CEO of Sam’s Alameda Research and reported girlfriend of Sam’s.

Sara Fisher Ellison and Glenn Ellison: Caroline’s mother is professor of economics at MIT with a research specialization in the pharmaceutical industry while her father has written at least four papers on epidemiological modeling.

Nishad Singh: former MIT roommate of Sam’s who is said to have built the FTX platform. He seems to have left the Bahamas for India.

Zixiao “Gary” Wang: Co-founder with Sam of FTX and Alameda. He graduated from MIT and worked for Google. Beyond that hardly anything is known about him. He seems to have left the Bahamas and is reported to be in Hong Kong.

Ryan Salame: Graduate of UMass-Amherst and head of FTX Digital Markets, plus proprietor of R Salame Digital Asset Fund through the Berkshire Taconic Community Foundation, allegedly for charitable purposes.

William David MacAskill: real name Crouch, William is an author and philosopher and founder of the Centre for Effective Altruism and a close colleague of Sam’s. He served on the board of FTX Future Fund until it collapsed. He is a media personality who gives TED talks and is a leader purveyor of the view that one should get very rich and give it away.

Funded Institutions and Individuals (some taken from here)

Together Trial: This elaborate trial of therapeutics ended up inveighing against Ivermectin and Hydroxychloroquine and was generously funded by FTX. But that has been scrubbed from the public website. This is a continuing problem.

Moncef Slaoui: The head of Operation Warp Speed, he received $150,000 from FTX to write SBF’s autobiography, according to a Washington Post investigation.

HelixNano: A vaccine company that claims to be developing mutation-resistant vaccines, which received $10M in funding from FTX Future Fund, according to a Washington Post investigation.

Johns Hopkins Center for Health Security: This institution ran the Event 201 lockdown tabletop exercise in 2019, and received at least $175,000 for a single employee, from FTX coffers. We don’t know the full extent but it was enough for the head of the Center to defend Sam and FTX in public. Nor do we know Alameda Research’s funding reach of this institution.

Guarding Against Pandemics: Run by Sam’s brother Gabriel, this 501c4 gave at least $1M to campaigns in 2022. We do not know how much money Alameda/FTX funneled to this institution. Sam fequently recommend it as a target for charitable giving.

Protect Our Future: run by the two brothers, this PAC gave $28M to candidates in the 2022 cycle. We do not know how much Alameda/FTX gave.

Center for Innovation in Global Health, Stanford University: FTX and its network gave $1.5M to the institution.

ProPublica: A grant of $5M from FTX Future Fund. Other reports say $27 million.

Centre for Effective Altruism: FTX Future fund gift of $14M

Effective Ideas Blog: It promised to pay $1K to good blogs, and its Twitter frequently links to other institutions and individuals in the FTX network. Funded by Future Fund: $900K

Piezo Therapeutics: “Work on technology for delivering mRNA vaccines without lipid nanoparticles with the aim of making vaccines more safe, affordable, and scalable.” FTX gave $1M

Council on Strategic Risks: “a project which will develop and advance ideas for strengthening regional and multilateral cooperation for addressing biological risks.” $400K from FTX

AVECRIS Pte. Ltd: “support the development of a next-generation genetic vaccine platform that aims to allow for highly distributed vaccine production using AVECRIS’s advanced DNA vector delivery technology.” $3.6M from FTX

University of Ottawa: “a project to develop new plastic surfaces incorporating molecules that can be activated with low-energy visible light to eradicate bacteria and kill viruses continuously.” FTX gave $250K

1Day Sooner: “work on pandemic preparedness, including advocacy for advance market purchase commitments, collaboration with the UK Pandemic Ethics Accelerator.” FTX gave $300K.

SAGE: “creation of a pilot version of a forecasting platform, and a paid forecasting team, to make predictions about questions relevant to high-impact research.” FTX gave $700K

Longview: “global priorities research, nuclear weapons policy, and other longtermist issues.” Advisor: William MacAskill. FTX gave $15M

Confirm Solutions: “support development of statistical models and software tools that can automate parts of the regulatory process for complex clinical trials.” FTX gave $1M

Lightcone Infrastructure: “ongoing projects including running the LessWrong forum, hosting conferences and events, and maintaining an office space for Effective Altruist organizations.” FTX gave $2M

Rational Animations: “the creation of animated videos on topics related to rationality and effective altruism to explain these topics for a broader audience.” FTX gift: $400K

Giving What We Can: “to create a world in which giving effectively and significantly is a cultural norm.” FTX gift: $700,000

The Atlas Fellowship: scholarships for talented and promising high school students to use towards educational opportunities and enrolling in a summer program. FTX gift: $5M

Constellation: “support 18 months of operations for a longtermist coworking space in Berkeley.” FIX coughed up $3.9M

Longview Philanthropy: “creating a longtermist coworking office in London.” FTX committed $2.9M

Long Term Future Fund: “longtermist grantmaking.” FTX committed $3.9M

OurWorldinData: graphs and charts portal. FTX committed $7.5M

Institute for Progress: “research and policy engagement work on high-skilled immigration, biosecurity, and pandemic prevention.” FTX was in for $480K. Additional support came from Emergent Ventures, which was modeled on Fast Grants that funded Neil Ferguson’s pandemic modeling at Imperial College London, which seems to have an entangled relationship with the SFB empire, one yet to be fully disclosed.

Conclusion

What is listed above only scratches the surface of the admitted $160 million given out, but the promise had been for fully $1 billion to go to various nonprofits in this network that seems to be supported or even founded in order to receive money from FTX-connected institutions.

We could only list some of the names and a fraction of the dollar amounts. There are many other institutions and names that could be part of this list but we lacked enough documentation to verify for this article. There is still the task of listing all political campaigns that were in receipt of the money as well as the public-relations boosters of the whole effort.

Building off the success of Bill Gates, Sam Bankman-Fried, and his many associates, clearly saw philanthropy as the path to influence, power, and protection. At the same time, many nonprofit organizations saw an opportunity too; to build their own empires through promised millions and billions from a crypto genius in the Bahamas who had an unusual passion for pandemic planning.

For three years, many of us have wondered how it came to be that the critics of lockdowns and mandates were so few and far between. There are surely many explanations but, as usual, it helps fill in the dots to follow the money.

Author

  • Jeffrey A. Tucker

    Jeffrey A. Tucker, Founder and President of the Brownstone Institute, is an economist and author. He has written 10 books, including Liberty or Lockdown, and thousands of articles in the scholarly and popular press. He writes a daily column on economics at The Epoch Times, and speaks widely on topics of economics, technology, social philosophy, and culture.

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Balanced budget within reach—if Ottawa restrains spending

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From the Fraser Institute

By Jake Fuss and Grady Munro

This level of debt-financed spending has contributed to an estimated $941.9 billion increase in gross federal debt from 2014/15 to 2023/24. In other words, partly due to its spending habits, nearly one in every two dollars of debt currently held by the federal government has been accumulated under Prime Minister Trudeau.

The Trudeau government will table its next budget on April 16. Federal finances have deteriorated in recent years due to the Trudeau government’s string of budget deficits, and high spending has led to a significant amount of debt accumulation, which imposes costs on current and future generations. Yet if the government presents a plan in Budget 2024 to rein in spending growth, it could balance the budget in two years.

Far from its promise to balance the budget by 2019, the Trudeau government has instead run nine consecutive deficits during its time in office. And it doesn’t intend to stop, with annual deficits exceeding $18 billion planned for the next five years.

The root cause of these deficits is the government’s inability to restrain spending. Since 2014/15, annual program spending (total spending minus debt interest) has increased $193.6 billion—or 75.5 per cent. If we control for population growth and inflation, this represents an extra $2,330 per person.

This level of debt-financed spending has contributed to an estimated $941.9 billion increase in gross federal debt from 2014/15 to 2023/24. In other words, partly due to its spending habits, nearly one in every two dollars of debt currently held by the federal government has been accumulated under Prime Minister Trudeau. Debt accumulation will only continue barring a change in course, as the federal government is expected to add another $476.9 billion in gross debt over the next five years.

Simply put, the Trudeau government’s approach towards federal finances has been characterized by high spending, large deficits and significant debt accumulation.

This approach to fiscal policy is concerning. Growing government debt leads to higher debt interest costs, all else equal, which eat up taxpayer dollars that could otherwise have provided services or tax relief for Canadians. And these costs are not trivial. For example, in 2023/24 the federal government is expected to spend more to service its debt ($46.5 billion) than on child-care benefits ($31.2 billion).

Accumulating debt today also increases the tax burden on future generations of Canadians—who are ultimately responsible for paying off this debt. Research suggests this effect could be disproportionate, with future generations needing to pay back a dollar borrowed today with more than one dollar in future taxes.

Although the Trudeau government promises more of the same for the coming years, this need not be the case. Instead, a recent study shows the federal government could balance the budget in two years if it slows spending growth starting in 2024/25. The following figures highlight this approach. The first chart below displays currently planned federal program spending from 2023/24 to 2026/27, compared with the spending path that will balance the budget, while the second chart shows the resulting budgetary balances.

Figure 1

Figure 2

As shown by the first chart, to balance the budget by 2026/27 the federal government must limit annual spending growth to 0.3 per cent for two years. As a result, annual nominal program spending would rise from $469.4 billion in 2024/25 to $472.3 billion in 2026/27. For comparison, the Trudeau government currently plans to increase annual spending up to $499.4 billion during that same period.

Should the government implement this level of spending restraint, the federal deficit would shrink to $21.8 billion in 2025/26 (as opposed to $38.3 billion), and the budget would be balanced by 2026/27 (as opposed to a $27.1 billion deficit). All told, by slowing spending growth to balance the budget, the federal government would avoid accumulating significant debt. Moreover, this also sets the government up to return to budget surpluses in the following years, which could be used to start chipping away at the mountain of federal debt already on the books.

Rather than continue its current approach to fiscal policy, and risk needing to employ more drastic cuts in the future, the Trudeau government should implement modest spending restraint now and balance the budget.

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Police admit Canadian bribery scandal was nixed without talking to Trudeau, reviewing records

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From LifeSiteNews

By Anthony Murdoch

The Royal Canadian Mounted Police believed there was political pressure to dismiss a government bribery case against engineering firm SNC-Lavalin in 2019 but claimed there was insufficient evidence to proceed.

The Royal Canadian Mounted Police (RCMP) confirmed that it never talked with Prime Minister Justin Trudeau or was able to view secret cabinet records before dismissing charges in a bribery scandal involving the large engineering firm SNC-Lavalin.

The RCMP’s admission came after intense questioning before the House of Commons ethics committee late last month.

As per Blacklock’s ReporterRCMP commissioner Michael Duheme testified, “No one is above the law,” adding that there was “insufficient evidence to proceed” with the investigation.

In a 2021 memo titled RCMP Assessment Report: Obstruction of Justice SNC-Lavalin Affair obtained from Access to Information requests last October by Democracy Watch, the RCMP noted that it did not doubt there was indeed political pressure to stop criminal prosecution of SNC-Lavalin.

“However, for it to be an offence under the Criminal Code, there must be more than a technical violation,” the 2021 memo read.

During the House of Commons ethics committee meeting in February, Duheme said he had considered the SNC-Lavalin case routine, noting, “We approach every investigation in the same manner.”

Staff Sergeant Frédéric Pincince, who serves as a director of investigations, admitted that the RCMP never questioned Trudeau in the SNC-Lavalin case but gave no reason.

“He was not interviewed,” testified Pincince, to which Conservative MP Larry Brock asked, “Was there at least an attempt to interview Justin Trudeau?”

“No,” Pincince replied.

In October 2023, Canadian Liberal MPs on the ethics committee voted to stop the RCMP from testifying about the SNC-Lavalin bribery scandal.

In June 2023, LifeSiteNews reported that the RCMP denied it was looking into whether Trudeau and his cabinet committed obstruction of justice concerning the SNC-Lavalin bribery scandal.

SNC-Lavalin was faced with changes of corruption and fraud concerning about $48 million in payments made to Libyan government officials between 2001 and 2011. The company had hoped to be spared a trial and prosecution deferred prosecution agreement.

However, then-Attorney General Jody Wilson-Raybould did not go along with Trudeau’s plan, which would have allegedly appeared to help SNC-Lavalin. In 2019, she contended that both Trudeau and his top Liberal officials had inappropriately applied pressure on her for four months to directly intervene in the criminal prosecution of Montreal-based global engineering firm SNC-Lavalin relating to its scandal involving corruption and bribery charges connected to government contracts it once had in Libya.

Commissioner mum on whether there was ‘reluctance’ to charge a sitting PM

During the ethics committee meeting, Brock asked Duheme if there was an “overall general reluctance in charging a sitting Prime Minister?”

“I would say to that, we follow the evidence and if the evidence warrants charges, we charge,” Duheme replied.

Brock then asked if the RCMP obtained “all relevant documents to further the investigation?”

Duheme admitted that “we were limited with the information that we had access to.”

Brock pressed him, asking, “Is that a yes or no, sir?” to which Duheme replied, “I don’t know,” adding, “We didn’t know.”

“We don’t know, we still don’t know to this day all the information that is out there,” Duheme responded.

Brock then pressed Duheme, asking why the RCMP did not “exercise its absolute statutory right under the Criminal Code to obtain a production order or search warrant from a justice to obtain those cabinet documents?”

Duheme said the RCMP were not “able to obtain enough information or evidence.”

As for the initial investigation concerning SNC-Lavalin, Wilson-Raybould testified in early 2019 to Canada’s justice committee that she believed she was moved from her then-justice cabinet posting to veterans’ affairs due to the fact she did not grant a request from SNC-Lavalin for a deferred prosecution agreement rather than a criminal trial.

Of note is that a criminal conviction would have banned the company from landing any government contracts for 10 years.

Trudeau flat-out denied it was being investigated by the RCMP.

Less than four years ago, Trudeau was found to have broken the federal ethics laws, or Section 9 of the Conflict of Interest Act, for his role in pressuring Wilson-Raybould.

On February 12, 2019, Wilson-Raybould resigned from her veterans’ affairs post and Treasury Board president Jane Philpott quit in March 2019. They both cited a lack of confidence in the Liberal government’s handling of the scandal.

Then, in April 2019, Trudeau turfed Wilson-Raybould and Philpott from his caucus, meaning they were no longer part of the Liberal Party.

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