Beto O’Rourke Returned a $1M Campaign Donation From SBF

Beto O’Rourke returned a $1 million donation from political megadonor and former FTX CEO Sam Bankman-Fried four days before the election, according to the Texas Tribune.

The former Texas Democratic gubernatorial candidate reportedly decided to reimburse the donation, which he initially received on Oct. 11, because he was uncomfortable receiving such a large, unsolicited donation. His campaign staff told the Tribune that O’Rourke and Bankman-Fried had not spoken prior to the donation, and it came as a “surprise.”

Bankman-Fried personally donated $40 million to largely Democratic candidates, while other FTX executives, including co-CEO Ryan Salame, donated to Republicans. Some of those candidates, including Senator Kirsten Gillibrand (D-N.Y.), who received at least $16,600 from Bankman-Fried, are rushing to wash their hands of the association with Bankman-Fried’s suspect money donations, promising to donate the money to charity.

While O’Rourke returned Bankman-Fried’s October donation, the now-disgraced crypto mogul was the Texas Democrat’s biggest campaign donor during the previous fundraising cycle from July 1 to Sept. 29, during which Bankman-Fried donated a total of $1 million.

O’Rourke’s reluctance to accept the large donation could also have been influenced by the political divisiveness of cryptocurrency in Texas. O’Rourke’s opponent, Republican incumbent Greg Abbott (who won the election), is a vocal supporter of the crypto industry – particularly crypto mining – in the state.

Texas’ unique and fragile power grid has struggled to support the state’s growing energy requirements in recent years, leading to an increase in blackouts.

Abbott’s open invitation to bitcoin miners to set up shop in Texas has been met with criticism, particularly from Democrats, who are concerned that the growing presence of crypto miners could further strain the state’s grid.