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Bitcoin-Related L1 Crypto Soars 13% After Co-Founder Alleges Nexus Between Sam Bankman-Fried, Elizabeth Warren

Benzinga · 11/16/2022 00:51

Peter Shea, the co-founder of Stacks (CRYPTO: STX), has revealed a tangled web of Sam Bankman-Fried’s political connections, including one with Sen. Elizabeth Warren (D-MA), following FTX’s (CRYPTO: FTTrecent collapse.

What Happened: The price of STX rallied over 13% after Shea took to Twitter about Bankman-Fried's alleged political connections. The Stacks native token is currently trading at about $0.25, among the biggest intraday gainers.

See Also: How To Buy Stacks (STX)

Stacks is a Layer 1 solution focused on bringing smart contracts and decentralized apps to Bitcoin (CRYPTO: BTC).

Last week, Stacks' coin tumbled to its lowest this year of $0.21 amid a cryptocurrency market sell-off triggered by the FTX collapse. However, it rebounded twice from the $0.21 support within a week, even as the market remained uncertain.

Allegations: According to Shea, Bankman-Fried’s parents — both Stanford law professors — have long been involved with the Democratic Party.

Shea, citing a Fortune article and Warren's official website, said it was Bankman-Fried's father, Joe Bankman, who helped her draft and endorsed her tax filing legislation in 2016.

Shea said there was an element of irony in Warren's response to the FTX debacle, in which the Massachusetts senator advocated for "more aggressive" enforcement and "stronger rules" in the crypto industry, without mentioning Bankman-Fried's name or his $39 million donation to her party for the U.S. midterm elections.

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