A probe by the state of Oregon has unveiled a falsely registered donation by FTX to the Oregon Democratic Party. The published findings appear to implicate a high-ranking senator and his staff. Ironically, the senator in question is a populist who would presumably be against the surreptitious role of corporate cash in elections.
A report published by Oregon Live on Tuesday described the outcome of an investigation by the Secretary of State’s Office. It has found that a fundraiser linked to US Senator Ron Wyden, an Oregon Democrat, coordinated an illegal $500,000 donation from an FTX executive to the state Democratic Party. The probe also revealed the involvement of two long-time Wyden campaign staffers in the transaction.
A Misrepresented FTX Donation
Oregon law prohibits making or accepting campaign contributions under false names. However, in the case of the $500,000 donation last year from FTX executive Nishad Singh to the Democratic Party of Oregon, the contribution was misreported as coming from a payment processor instead of Singh himself, Oregon Live noted.
The payment is the single largest campaign donation on record, according to Oregon Live. The Secretary of State’s case file has remained closed, and there is little information on how the Democratic Party of Oregon achieved that large of a donation and on what terms.
Emails obtained by the Secretary of State’s office indicate that fundraiser Diana Rogalle coordinated the donation. And, she was aware of the party’s decision to misreport the contribution. Rogalle, a long-time Wyden campaign associate, has been working with Wyden since at least 2009.
Singh has been in serious trouble since FTX fell apart last November. In December, Singh faced criminal charges and later pleaded guilty to six counts of criminal fraud. On February 28, he agreed to cooperate with the federal investigation into FTX founder Sam Bankman-Fried. The FTX executive has admitted to using customers’ funds to make political donations.
Learn about the most dramatic implosion of a cryptocurrency exchange in history: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
Rogalle Is a Longstanding Ally of Senator Wyden
The Democratic Party of Oregon announced on Friday its decision to return the funds, which were partially used during the November election to support the candidacy of Gov. Tina Kotek. The decision is in keeping with a request from the Justice Department. The returned funds will come from the campaign accounts of Wyden, along with Senator Jeff Merkley and US Representatives Earl Blumenauer, Suzanne Bonamici, Val Hoyle, and Kotek.
The scandal will cast a negative light on Senator Wyden, who has held office since 1996. The 73-year-old currently serves as chair of the Senate Finance Committee. At the time of this writing, he is the fifth most senior senator in terms of tenure length.
For those who have followed the FTX saga, the revelations may not be so surprising. Prior to the collapse of FTX and his subsequent arrest, Sam Bankman-Fried was a highly active donor in Washington. Politicians began handing donations back less than a month after FTX imploded.
However, in February, the new CEO of FTX demanded the return of all political donations made by Bankman-Fried and his allies. Bankman-Fried initially donated publicly to the Democratic Party but later asserted that he was giving nearly equal amounts to Republicans.
BeInCrypto has reached out to Democratic and Republican party officials for comment on the matter.
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