SBF Grants Are Being Returned By Media Organizations

Key Points:

• SBF, the former CEO of FTX, gave substantial gifts to several media enterprises; however, following his imprisonment, groups plan to return his funds.
• The business tycoon is accused of utilizing clients’ money while also committing fraud, money laundering, and providing a false financial image of his company. He might be deported to the United States.
• SBF supported newsrooms financially and generously with investments and gifts as part of a bigger trend that includes about $40 million in political donations this cycle.

Following the Justice Department’s filing of charges against the cryptocurrency tycoon last week, certain media firms that received funding from Sam Bankman-Fried (SBF) or his foundation have declared steps to refund or freeze the funds.

The former FTX CEO is accused of utilizing clients’ money while also committing fraud, money laundering, and providing a false financial image of his company. He might be deported to the United States.

ProPublica, a nonprofit journalism organization, announced on Tuesday that it would refund the $1.6 million it had received from Building a Stronger Future, SBF’s family foundation.

The donation was a portion of a $5 million, three-year grant to support public health, biosecurity, and coronavirus reporting. The nonprofit said it would find alternative means to pay for the remaining award.

ProPublica co-chief executives Robin Sparkman and Stephen Engelberg wrote in a memo obtained by The Washington Post:

“In light of more recent allegations that some of Bankman-Fried’s gains may have come from fraudulent activities, it does not seem appropriate to keep these funds.”

Early in November, when SBF’s exchange, FTX, filed for bankruptcy on allegations that he misappropriated billions of dollars in client assets, ProPublica had already terminated the grant.

The SBF family foundation gave Vox Media $200,000, and the firm has likewise chosen to refund the entire sum. According to a Vox representative, in the month of August, they have already spent $14,000 on difficulties facing society, such as combating global poverty and climate change. It’s yet unknown how Vox will locate a new financing source or get their money back.

The $500,000 award provided to the news outlet Intercept as a portion of a $4 million grant is being re-examined. On Tuesday, spokesman Rodrigo Brandao stated:

“At this time, we are still gathering the information we need to make a principled decision in accordance with our mission and values,”

The business previously claimed that this had caused a financial gap.

Semafor, a startup, obtained the money from SBF in May of this year with the hopes of being able to publish independent journalism. They are, however, rethinking their position and waiting for a decision from the authorities.

SBF supported newsrooms financially and generously with investments and gifts as part of a bigger trend that includes about $40 million in political donations this cycle. To Democratic-aligned groups, this was significant. Before the public disclosure of fraud claims, FTX was widely considered one of the most ethical companies operating in the crypto industry.

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