\n
Comment on this story<\/title><\/button><\/p>\n<p>Comment<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"teaser-content grid-center\">\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Some media companies that received money from Sam Bankman-Fried or his foundation have announced plans to return or freeze the cash after Justice Department charges were filed against the cryptocurrency tycoon last week.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">The nonprofit news organization ProPublica said Tuesday it would return $1.6 million it received from Bankman-Fried\u2019s family foundation, Building a Stronger Future. The money was <a target=\"_blank\" href=\"https:\/\/www.propublica.org\/atpropublica\/bankman-fried-family-donates-5-million-to-propublica\" rel=\"noopener\">part of a $5 million, three-year grant<\/a> intended to subsidize public health, biosecurity and <a target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/coronavirus\/?itid=lk_inline_manual_4\" class=\"contextual_link\" rel=\"noopener\">coronavirus<\/a> reporting, which the nonprofit said it will find other ways to fund. ProPublica had already <a target=\"_blank\" href=\"https:\/\/twitter.com\/maxwelltani\/status\/1591188967596380160?lang=en\" rel=\"noopener\">suspended the grant<\/a> in early November, the same day Bankman-Fried\u2019s cryptocurrency exchange, FTX, filed for bankruptcy amid accusations that he misused billions in customers\u2019 funds.<\/p>\n<\/div>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cIn light of more recent allegations that some of Bankman-Fried\u2019s gains may have come from fraudulent activities, it does not seem appropriate to keep these funds,\u201d ProPublica co-chief executives Robin Sparkman and Stephen Engelberg wrote in a memo obtained by The Washington Post. Axios <a target=\"_blank\" href=\"https:\/\/www.axios.com\/2022\/12\/20\/propublica-return-sbf-funds\" rel=\"noopener\">first reported<\/a> the nonprofit\u2019s decision to return the money, which will be placed in a separate account until authorities determine where it should be returned to.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Several other media companies that took money from Bankman-Fried, or more commonly his family foundation, have faced scrutiny since FTX\u2019s abrupt collapse. Bankman-Fried, who resigned as the company\u2019s chief executive in November, was arrested in the Bahamas last week and is facing extradition to the United States on charges of conspiracy, fraud, money laundering, violating campaign finance laws and other financial crimes.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Vox Media spokeswoman Priyanka Mantha said the digital media company intends to return nearly all of a $200,000 grant from the foundation that was earmarked for a Vox.com vertical called Future Perfect \u2014 \u201cif and when a restitution fund is created.\u201d She said Vox has already spent $14,000 of the money, which it received in August to support a reporting project on climate change, global poverty and other societal challenges.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">It\u2019s unclear what other beneficiaries plan to do with their funds or how their newsrooms will make up the loss if the money is returned.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">A spokesman for the Intercept said the news organization is still evaluating what to do with $500,00 it received in September, which was part of a $4 million grant from Bankman-Fried\u2019s foundation. \u201cAt this time, we are still gathering the information we need to make a principled decision in accordance with our mission and values,\u201d spokesman Rodrigo Brand\u00e3o said Tuesday. (The organization sent a fundraising email last month conveying that the funding\u2019s loss has created \u201ca significant hole in our budget.\u201d)<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\"><a target=\"_blank\" href=\"https:\/\/twitter.com\/justin_b_smith\/status\/1598712692025528323\" rel=\"noopener\">In a Dec. 2 memo<\/a> to employees, Semafor co-founder Justin Smith did not disclose how much the media start-up had received from Bankman-Fried personally during a funding round that ended in May, but said, \u201cWe accepted this investment in the spirit in which it was offered \u2014 to support independent journalism.\u201d He added: \u201cWe will await their [investigative authorities\u2019] guidance on appropriate next steps and don\u2019t anticipate any impact on our business.\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">A Semafor spokesman said Tuesday that the company has no additional comment.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">The Law & Justice Journalism Project, an organization dedicated to improving coverage of the criminal legal system, has also received funding from Bankman-Fried\u2019s foundation, <a target=\"_blank\" href=\"https:\/\/www.niemanlab.org\/2022\/08\/the-law-justice-journalism-project-aims-to-help-journalists-covering-crime-and-the-u-s-legal-system\/\" rel=\"noopener\">according to Nieman Lab<\/a>.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Bankman-Fried\u2019s grants to newsrooms were part of a broader pattern of funding, investment and largesse, including about<a target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/business\/2022\/12\/14\/sbf-ftx-political-donations\/?itid=lk_inline_manual_19\" rel=\"noopener\"> $40 million in political donations he made this cycle<\/a>, mostly to Democratic-aligned organizations. He gave the cash before fraud accusations came to light, at a time when FTX was <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/sites\/brandonkochkodin\/2022\/11\/11\/the-red-flags-on-ftx-we-all-seemed-to-miss\/?sh=4d29dc8d11f6\" rel=\"noopener\">widely viewed <\/a>as one of the more responsible companies in the loosely regulated cryptocurrency industry.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">At the time media companies received grants, \u201cNo one seemed to have any doubt that Sam Bankman-Fried had an enormous amount of money,\u201d said veteran media executive Richard Tofel, who recently <a target=\"_blank\" href=\"https:\/\/dicktofel.substack.com\/p\/what-if-your-donor-turns-out-to-be\" rel=\"noopener\">wrote a blog post<\/a> asking, \u201cWhat if your donor turns out to be a crook?\u201d<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">Chris Roush, dean of Quinnipiac University\u2019s school of communications, argued that media companies should nevertheless promptly return any funds received by Bankman-Fried or his foundation to \u201cavoid any appearance of impropriety.\u201d And he said they should have done more due diligence before taking the money, considering the volatility of the cryptocurrency industry and its lack of financial transparency.<\/p>\n<\/div>\n<div class=\"article-body\" data-qa=\"article-body\">\n<p data-qa=\"drop-cap-letter\" data-el=\"text\" class=\"wpds-c-cYdRxM wpds-c-cYdRxM-iPJLV-css font-copy\">\u201cNews organizations, particularly start-ups, need to be as vigilant examining who\u2019s giving them money as they are examining information received from sources,\u201d Roush said.<\/p>\n<\/div>\n<section class=\"dn-ns hide-for-print\" data-testid=\"mostRead\" \/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiRmh0dHBzOi8vd3d3Lndhc2hpbmd0b25wb3N0LmNvbS9tZWRpYS8yMDIyLzEyLzIwL3NiZi1qb3VybmFsaXNtLWdyYW50cy_SAQA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Comment on this story Comment Some media companies that received money from Sam Bankman-Fried or his foundation have announced plans to return or freeze the cash after Justice Department charges were filed against the cryptocurrency tycoon last week. The nonprofit news organization ProPublica said Tuesday it would return $1.6 million it received from Bankman-Fried\u2019s family […]<\/p>\n","protected":false},"author":1,"featured_media":38746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[36],"tags":[3167,327,4226,1267,71,5398,3166,2625],"class_list":["post-38745","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bankmanfried","tag-companies","tag-linked","tag-media","tag-money","tag-returning","tag-sam","tag-start"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/12\/QP6Z63E4RV6X4ZNL6CX2YDEQGA.JPGw1440.jpeg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/38745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38745"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/38745\/revisions"}],"predecessor-version":[{"id":38747,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/38745\/revisions\/38747"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/38746"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38745"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}