Money laundering's greatest hits: SBF funds, UK loopholes, and a by-election remix 🗳️

Reform UK chair Lee Anderson has called on the parliamentary commissioner for standards to investigate UK Defence Secretary Wes Streeting over $50,000 in political donations routed through a think tank connected to former FTX CEO Sam "SBF" Bankman-Fried. According to a Friday report from the Telegraph, the donations were made in 2022 and 2023 via Labour for the Long Term, a think tank whose founder David Lawrence reportedly accepted a $675,000 gift from Bankman-Fried before forwarding funds to Streeting. The appeal comes as Reform leader Nigel Farage prepares to face voters next week in a by-election triggered by his resignation as a member of parliament amid his own crypto-related controversy. Farage received $6.7 million in donations from crypto billionaire Christopher Harborne, along with financial assistance from George Cottrell, a convicted fraudster linked to a crypto casino. Farage has described the contributions as "gifts."

Under UK law, unincorporated associations may give more than $675 directly to politicians, a structure the International Bar Association says can be used by companies with UK business as "conduits for foreign or dark money" to lawmakers without disclosure of the underlying source. According to the Telegraph, Streeting requested a list of Labour for the Long Term's donors before accepting the $50,000, but Bankman-Fried's name was not included. Streeting said he has never had any contact with the former FTX CEO, who is currently serving a 25-year prison sentence after his conviction on seven felony charges. Lawrence said Streeting's contribution was funded by a donor other than the former FTX chief and that Labour for the Long Term "did not receive any donations from the FTX Foundation or Mr. Bankman-Fried," according to the Telegraph. Crypto companies have spent $189 million so far on the 2026 US election cycle, per recent industry reporting.

Separately, the US Court of Appeals for the Second Circuit issued a formal mandate this week upholding Bankman-Fried's felony conviction and 25-year sentence. The appeals court announced its ruling in June, narrowing Bankman-Fried's remaining legal avenues for an early release from prison. He retains the option of appealing to the US Supreme Court or seeking a presidential pardon from Donald Trump.