Demands continue for Lightfoot and Garcia to detail ties to FTX scandal

Paul Vallas calls on Chuy Garcia to return tainted funds and come clean about his relationship with indicted Crypto billionaire

Chicago Mayoral Candidate Paul Vallas on Wednesday called for Chuy Garcia to come clean about his relationship with indicted crypto-king Sam Bankman-Fried, whose political action committee contributed $200,000 to Garcia’s 2022 Congressional re-election campaign even though Garcia was unopposed in the race.

The contribution raises major ethical and pay-to-play questions for Garcia, who sits on the U.S. House Committee that regulates cryptocurrency. Vallas also called on Garcia to return the tainted funds immediately.

“For a candidate who claims to be a ‘reformer,’ this particular situation raises major ethical questions that Chuy Garcia must be made to explain,” said Vallas.

“Are we supposed to believe that this contribution had nothing to do with his position on the congressional committee that sets federal policy on cryptocurrency? Chicagoans are tolerant people, but they are not stupid.”

Sam Bankman-Fried in an interview during the Bitcoin 2021 conference. Photo courtesy of Wikipedia

The PAC funded by the FTX Founder spent nearly $200,000 on text messages and direct mail supporting Garcia’s primary re-election, even though he did not have an opponent in his congressional race.

Bankman-Fried faces widespread charges of fraud after the collapse of his cryptocurrency exchange, FTX, and his arrest in the Bahamas Tuesday. He faces eight federal criminal counts as well as civil charges brought by the Securities and Exchange Commission. The explosive allegations are already impacting Washington policy battles and regulations on the future of cryptocurrency guidelines.

LIGHTFOOT ALSO TIED TO CRYPTO KING

Vallas also noted that Garcia is not alone in his slow dance with the now defrocked king of crypto.

In May of this year, Mayor Lori Lightfoot and senior administration official Deputy Mayor for Economic Development Samir Mayekar joined the celebration of the grand opening of FTX’s global headquarters in the Fulton Market area, touting FTX’s pledge of $1 million for a pet Lightfoot project.

It was a pot sweetener that never materialized from Bankman-Fried and FTX, which closed shop and moved its headquarters to Miami four months later.