(NewsGlobal.com)- After the popular cryptocurrency exchange collapsed, Treasury Secretary Janet Yellen is calling for crypto to be regulated. Sam Bankman-Fried, the CEO and co-founder of FTX, who reportedly spent more than $40 million to pay off Democrats at the Commodity Futures Trading Commission (CFTC), filed for his company’s bankruptcy, plummeting the entire crypto market by nearly $200 billion.
Up to $2 billion is missing in assets, with most investors unable to recover what they lost.
FTX was reportedly funneling money into Democrat politicians’ pockets while helping Ukraine convert their over $60 billion in crypto donations into cash. Democrats then passed legislation to send billions more to Ukraine as Bankman-Fried continues to funnel money into their campaign coffers. Ukraine, which used some or all of the U.S.’s money, invested in FTX and has since been unable to recover its losses.
Bankman-Fried is also President Biden’s second biggest donor, second only to George Soros.
The messy situation is prompting the treasury secretary to call for regulation into the supposed “decentralized” digital currency.
“It shows the weakness of this entire sector,” she exclaimed to Bloomberg, adding that in other “regulated exchanges” customer assets are separated from funds used to loan to other enterprises for risky, leveraged investments.
The Washington Post reported shortly after Russia invaded Ukraine, that Ukraine had been accepting crypto in the form of donations, gathering more than $60 million from all over the world. The country was unsure how to convert those digital assets into expendable cash for the war. That’s when Bankman-Fried announced that FTX is supporting the Ukrainian Ministry of Finance and other communities to reportedly collect crypto donations on their behalf.
The misuse of those funds is sure to cause havoc in the imminent battle on Capitol Hill over the U.S.’s role in supporting Ukraine.
Alex Bornyakov, deputy minister of digital transformation of Ukraine denies ever having invested money into FTX, according to CoinDesk. Bornyakov added that any narrative that Ukraine invested money into FTX which then donated to Democrats is