Uhh … What’s Going to Happen to All That Money Sam Bankman-Fried Gave Politicians?

Sam Bankman-Fried was arrested last week in the Bahamas on eight separate criminal counts. The Justice Department’s Southern District of New York indicted him on charges including wire fraud, securities fraud, conspiracy to commit fraud, money laundering, and campaign finance violations.

The first seven counts look most pressing for investors in Bankman-Fried’s bankrupt cryptocurrency exchange FTX, as well as for customers hoping to get their money back; the final one is the top concern for politicians in Washington.

Famously, Bankman-Fried was a top donor during the 2022 election cycle, giving nearly $40 million to mostly...