Cointime

Download App
iOS & Android

Should US Lawmakers Go to Prison for Accepting Sam Bankman-Fried Donations?

Validated Individual Expert

Public disdain grows as we decide who is the worse person, Sam Bankman-Fried (SBF) or the man formerly known as Kanye West. Interestingly, the authorities have apprehended neither of these men. SBF's potential crimes are evident and apparent to everyone, and Kanye has committed a hate crime with his threats.

Meanwhile, on the other side of the world, one couple faces 20 years in prison for a crime many would argue they did not commit. Australian residents Thevamanogari Manivel and Jatinder Singh are being charged with theft after Crypto.com mistakenly deposited $10.5 million in their bank account.

Rather than research the source and return the funds, the couple spent the "perceived" windfall on a lavish lifestyle many of us dream about. According to Business Insider, they gave money to their children, paid off a friend's mortgage, and purchased luxury items, furniture, and art.

The argument against the Australian pair is that they should have recognized the funds were not rightfully theirs and found out who they belonged to. Hence, the prosecution equates their actions as theft and negligent dealing with the proceeds of a crime.

If Manivel and Singh are found guilty, it leads me to wonder: should US lawmakers who accepted funds from Sam Bankman-Fried be required to stand trial for accepting political donations?

I'm not a lawyer

I'm not a lawyer, never spent a day in law school, and won't pretend to know the letter of the law. I'm not trying to cite codes or regulations the Australian couple may have violated, or US political parties may have broken.

But, it raises the question of certain people facing prosecution for alleged crimes that weren't wholly their fault.

Looking at it from the Manivel and Singh side

Crypto.com messed up. They deposited $10.5 million in funds into a bank account for one of their customers. It took Crypto.com over seven months to recognize the error and figure out the mistake they made.

Manivel and Singh almost certainly knew the money was not theirs. But we aren't talking about finding a briefcase of cash in the street and deciding what to do with it. Instead, the funds were deposited into their bank account.

In theory, most of us would find out where the windfall funds came from if we magically had $10.5 million deposited in our checking account. But I'm sure most reading this would be tempted to spend at least some of the funds. I know I would.

After all, is it stealing if someone puts money in your bank account? I'm not a lawyer, but apparently, it is. And if Crypto.com hadn't been reckless, none of the funds would be in the couple's account.

Further, according to the story, $7 million of the assets were accounted for. So Crypto.com is getting a minimum of 70% of the funds they made a mistake in depositing.

Drawing a correlation to US politics

SBF is being interviewed like a celebrity for the tremendous crimes he committed on millions of investors. Yet, on a November 16 phone call, he states, "I donated to both parties. I donated about the same amount to both parties."

It was common knowledge that SBF was a substantial democratic supporter. He was Biden's second-largest donor in the 2020 presidential campaign. But, in regards to midterm elections, he states:

“All my Republican donations were dark. And the reason, was not for regulatory reasons, it’s because reporters freak the fuck out if you donate to a Republican because they’re all super liberal. And I didn’t want to have that fight so I just made all the Republican ones dark,” Bankman-Fried said on the call, claiming he was the “second or third biggest” donor to Republicans in 2022.

Surprisingly, I'm not a political expert either. So I looked up what a dark donation is, and here is the Google definition.

In the politics of the United States, dark money refers to spending to influence elections where the source of the money is not disclosed to voters. In the United States, groups that may spend on campaigns without disclosing who their donors are some nonprofit organizations.

Interestingly, we have tens of millions of dollars donated to Republicans and Democrats that we now learn have been stolen from retail and institutional investors. Unfortunately, like Manivel and Singh, the politicians didn't research where the funds were sourced and (I imagine) spent most of the funds on their campaign.

In total, SBF and his twisted menagerie of terror donated tens of millions of dollars to political campaigns. Does it seem strange that none of these politicians scratched their heads or thought to dig deeper about how this "self-made" guy under 30 could donate so much money?

Further, does the fact that SBF is not in jail now mean that his donations give him preferential treatment? Should dark contributions even be allowed? And should the politicians and their parties who accepted these donations be required to pay back the ill-gotten funds they received?

So why is the Australian couple facing 20 years for a few million, and SBF and politicians haven't had any repercussions?

Wouldn't you agree that SBF "losing" billions of investors' dollars and ruining an untold number of financial lives will have a more significant impact than the $3 million that Crypto.com lost due to its error? And, if politicians are getting windfall donations from questionable sources, should they have due diligence to seek how the funds were earned?

Further, if companies or individuals donate to both sides during an election, does this equate to bribery? Some politicians re-gifted or donated the funds after learning they came from a corrupt source. Can we argue they negligently dealt with the proceeds of a crime? I'm confident FTX investors would rather see those funds than have them donated elsewhere.

The Sickening Part

I don't expect repercussions against any political person or party for accepting stolen money. I doubt the funds will be reimbursed to FTX investors by the parties. But I don't understand how SBF and politicians' actions aren't significantly worse than those of Manivel and Singh.

On a separate point, the SEC has been going after Ripple for two years, accusing them of being a security. This illustrates that the SEC is proactively seeking to regulate crypto. So is the SEC culpable for not enforcing protecting investors from mammoth losses by the FTX bankruptcy, BlockFi bankruptcy, Celsius bankruptcy, Voyager bankruptcy, and other bankruptcies impacting millions of lives?

Further, the head of SEC, Gary Gensler, was meeting with SBF to go over regulations in the crypto space. It's like Gordon Ramsay approached Jeffrey Dahmer for instructions on cooking a vegetarian cookbook.

Takeaways

I'm not saying that the Australian couple isn't guilty of some crime. But if Crypto.com hadn't put the money in their account, none of this would have happened. Meanwhile, SBF knowingly committed fraud and stole account holders' money. In addition, he questionably donated large sums to both political parties. The political parties blindly accepted the funds, just like Manivel and Singh.

I understand one case is in Australia, and the other is in the US, so different laws may apply. Likewise, SBF is/was based in the Bahamas, so that may also have different laws applied. But how can people who fleeced billions of dollars from millions of people not be open to scrutiny or prosecution when a couple who a corporation mistakenly gave millions of dollars faces twenty years in prison?

Let me know what you think. I'm confident there are legal precedents differentiating these crimes. However, I can't see any law allowing one guy to steal billions of dollars and buy politicians. Do you think Manivel and Singh deserve prison time? Would you be tempted to spend $10.5 million if it mistakenly appeared in your account? Share your thoughts in the responses.

Comments

All Comments

Recommended for you

  • US Spot Bitcoin ETF Sees Net Outflow of $56.2 Million Yesterday

    On August 15, according to data monitored by Farside Investors, the US spot Bitcoin ETF experienced a net outflow of $56.2 million yesterday.

  • No Net Inflow or Outflow for US Spot Ethereum ETF Yesterday

    On August 15, according to monitoring data from Farside Investors, there was no net inflow or outflow for the US spot Ethereum ETF yesterday.

  • Charles Schwab: Low Probability of CLARITY Act Passing Before U.S. Midterm Elections

    On August 15, Charles Schwab stated in its 'Weekly Trader Market Outlook' that as of the time of writing, the Bitwise Top 10 Large Cap Crypto Index has fallen 3% since last Friday; Bitcoin has dropped 3% during the same period, while Ethereum is down 2%. Bitcoin continues to exhibit characteristics of a low-correlation asset, with limited impact on its price from the CPI and PPI data released this week. Last week, the U.S. Senate entered its summer recess without voting on the CLARITY Act. Although the final debate vote for the bill is scheduled for September 14, the probability of it passing before the midterm elections remains low.

  • Sources: Trump to Attend Closed-Door Meeting with Crypto Executives at the White House

    On August 15, sources revealed that U.S. President Trump is expected to attend a White House meeting held by the newly established Innovation Committee on Wednesday. The committee consists of executives from the crypto industry as well as leaders from prediction markets and artificial intelligence companies. Sources indicated that the CEOs of companies such as Coinbase, Ripple, Gemini, Robinhood, Polymarket, and Kalshi are members of the U.S. CFTC Innovation Advisory Committee. Before attending the committee's first official meeting on Thursday, these crypto industry CEOs will gather at the White House for the meeting on Wednesday. Attendees learned that Trump plans to participate in this meeting. The meeting is expected to take place at the Eisenhower Executive Office Building next to the White House, aiming to initiate policy discussions on several key directions in the U.S. innovation sector. Sources also stated that CFTC Chairman Mike Selig and other policy advisors are expected to attend the meeting. One source further revealed that U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick may also be present. The White House spokesperson has not yet responded to requests for comments regarding the meeting arrangements.

  • U.S. Optical Communication Stocks Rise, Lumentum Up Over 6%

    On August 14, U.S. optical communication stocks collectively rose, with Applied Optoelectronics increasing by over 14%, AXT Inc and MaxLinear rising by over 7%, POET Technologies and Lumentum up by over 6%, and Lightwave Logic increasing by over 5%. Corning and Tower Semiconductor also saw gains of over 4%.

  • Dunamu Reports 73% Decrease in Q2 Operating Profit to 23.5 Billion Won

    On August 14, Upbit operator Dunamu announced its Q2 2026 performance, reporting quarterly revenue of 173.5 billion won (approximately 123 million USD) and an operating profit of 23.5 billion won (approximately 16.65 million USD), representing declines of about 26% and 73% respectively compared to Q1. In the first quarter, Dunamu's revenue was 234.6 billion won (approximately 166 million USD) with an operating profit of 88 billion won (approximately 62.34 million USD). Dunamu stated that the decline in performance this quarter was primarily influenced by the overall contraction in liquidity in the global digital asset market, which weakened investor sentiment.

  • Broadcom Shares Plunge Over 5%

    On August 14, Broadcom's stock fell more than 5% during trading; the Abu Dhabi Mubadala Investment Company completely divested its holdings in Broadcom.

  • BlackRock Transfers 249.16 BTC and 301.76 ETH to Coinbase Prime, Valued at Approximately $16.216 Million

    According to Onchain Lens monitoring, BlackRock transferred 249.16 BTC, valued at approximately $15.65 million, and 301.76 ETH, valued at approximately $566,000, from its IBIT and ETHA wallets to Coinbase Prime three hours ago.

  • Today's Bitcoin ETF Sees Net Outflow of 2,015 BTC in the U.S.

    Lookonchain reported on platform X that on August 14, the Bitcoin ETF experienced a net outflow of 2,015 BTC, valued at $126 million; over the past seven days, the net outflow totaled 3,890 BTC, worth $243 million. The Ethereum ETF saw a net outflow of 277 ETH in a single day, valued at $517,100; however, over the past week, it recorded a net inflow of 22,900 ETH, worth $42.74 million.

  • Micron Establishes $250 Million Paradigm Fund to Invest in AI Infrastructure

    Storage chip giant Micron Technology has announced the launch of the Micron Ventures Paradigm Fund, with a size of $250 million, aimed at investing in startups that drive the development of the next generation of artificial intelligence. This is the largest third fund since the establishment of Micron Ventures, increasing its total capital commitments to $550 million. The fund will cover the entire AI technology stack, including AI model architecture, computing infrastructure, enterprise applications, and physical AI. Micron stated that as AI evolves from generative models to systems with reasoning, action capabilities, and interaction with the real world, the demand for high-performance computing, memory, and storage technologies is changing. The Paradigm Fund aims to establish deeper collaborations with companies driving these technological transformations and to proactively position itself for future AI infrastructure needs. The fund focuses on four key areas: 1. Model Architecture: Promoting innovations in AI model architecture and data infrastructure that will influence future computing, memory, and storage demands; 2. Compute: Including memory computing, next-generation networking technologies, and data center efficiency optimization; 3. Enterprise Applications: Utilizing AI to transform complex industries, including semiconductor design and manufacturing; 4. Physical AI: Covering robotics and new forms of devices, extending AI capabilities into the real world. Micron Ventures previously launched Fund I in 2019 and Fund II in 2022, and the new fund will further strengthen the company's investment layout in the AI ecosystem. Micron believes that the AI era is still in its early stages, and future technological advancements will reshape the way industries operate, with memory and storage becoming key infrastructures supporting the development of the next generation of AI.