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POSTS SPIN BASELESS THEORY ABOUT FTX, UKRAINE AND DEMOCRATS
* AP Photo/Bruce Kluckhohn, File
* Nov 18, 2022
* Nov 18, 2022 Updated Nov 18, 2022
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CLAIM: U.S. aid to Ukraine was laundered back to the Democratic Party through
the failed cryptocurrency exchange firm FTX.
THE FACTS: These claims misrepresent a short-term initiative in Ukraine that
used FTX to convert cryptocurrency donations for the war effort into
government-issued currency.
The Ukrainian government has not invested nor stored money in FTX, according to
the country's Ministry of Digital Transformation.
FTX, the third-largest cryptocurrency exchange in the world, filed for
bankruptcy protection on Nov. 11 amid news it was short billions of dollars and
may have been hacked. Sam Bankman-Fried, the company's CEO, resigned the same
day. The moves have fueled baseless conspiracy theories. "So Biden gave loads of
money to Ukraine, who gave loads of money to FTX, who gave loads of money to
Democrats," reads one tweet with over 100,000 likes. No evidence has been
presented to support the claims. Still, they have been shared by U.S. lawmakers,
prominent Republicans and Russian accounts. Ukraine's government "never invested
any funds into FTX," Alex Bornyakov, the deputy minister of digital
transformation in Ukraine said on Twitter on Monday. After Russia invaded
Ukraine, a new crypto fundraising foundation called Aid For Ukraine began taking
donations to help the Ukrainian war effort, the ministry said in an emailed
statement to the AP on Wednesday. The ministry said it "provided informational
support" to the foundation, which was run by the cryptocurrency exchange Kuna
and the blockchain company Everstake. In early March, Aid For Ukraine began
working with FTX to convert cryptocurrency donations into Ukraine's
government-issued currency, a partnership that ended in April 2022, according to
the ministry. Sergey Vasylchuk, the CEO of Everstake, told the AP that
cryptocurrencies were an efficient way to raise funds for Ukraine to defend
itself amid Russia's invasion. He said FTX was only used in the beginning of the
war to convert cryptocurrency donations. The donations would then get sent to
the National Bank of Ukraine and no crypto was stored on FTX. Michael Chobanian,
the founder of the Kuna exchange, said they had converted cryptocurrencies to
U.S. dollars through FTX and deposited them in the national bank of Ukraine at
the beginning of the war. "That is it," Chobanian said. The Ministry of Digital
Transformation added that it "has never funded FTX" and "has never worked with
any political party of the United States of America." It's true that
Bankman-Fried has been a major Democratic donor. FEC records show that he made
significant donations to Democratic candidates and PACS this year. However, he
has also made contributions to some Republican candidates and
conservative-leaning PACS. FTX's co-CEO Ryan Salame also donated to groups that
supported Republican candidates in 2022. White House spokesperson Robyn
Patterson said any claim that U.S. assistance to Ukraine has "been diverted to
aid American political parties is unequivocally false and not grounded in
reality." Vedant Patel, principal deputy spokesperson at the State Department,
said there's "no reason to believe that these reports are anything but pure
falsehoods and misinformation." A spokesperson for the U.S. Agency for
International Development said safeguards put in place by the World Bank,
coupled with expert third-party monitoring support within the Ukrainian
government, ensure accountability around the use of the funds. FTX and lawyers
representing the company did not respond to requests for comment.
— Associated Press writers Ali Swenson in New York and Karena Phan in Los
Angeles contributed this report with additional reporting from Thalia Beaty in
New York.
AP Photo/Bruce Kluckhohn, File
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