Crypto Industry Exec Investigated for Suspected Campaign Finance Violations

Summary

• Former FTX exec Ryan Salame is under investigation for suspected campaign finance violations.
• The investigation is unrelated to the exchange’s dramatic collapse.
• U.S. prosecutors are looking into whether Salame violated campaign-financing laws in favor of his girlfriend, Michelle Bond, who ran as a Republican congressional candidate for the 2022 Republican Primary in New York’s First District.

Former FTX Exec Under Investigation

U.S. prosecutors have launched an investigation into Ryan Salame, formerly an executive with the cryptocurrency exchange FTX, to ascertain if he potentially violated campaign-financing laws in favor of his girlfriend, Michelle Bond, the Wall Street Journal reported July 11, citing people familiar with the matter. Bond ran as a Republican congressional candidate for the 2022 Republican Primary in New York’s First District. She announced her campaign in June 2022.

Background on Ryan Salame and Michelle Bond

Salame was one of FTX’s earliest executives before its dramatic collapse earlier this year. Prior to becoming an executive at FTX, Salame worked at Goldman Sachs from 2018-2020 before joining FTX’s business development team in 2020. He left the company last August after it was acquired by Binance Holdings Ltd., according to his LinkedIn profile. Meanwhile, Bond has been involved in the crypto industry for almost a decade and most recently served as chief compliance officer at CoinList Inc., which runs digital asset offerings and sales for blockchain companies seeking to raise funds from accredited investors through initial coin offerings (ICOs).

Suspected Campaign Finance Violations Unrelated to Exchange Collapse

The investigation into Salame is unrelated to any wrongdoing related to his role at FTX or its subsequent collapse earlier this year but instead pertains to possible violations of U.S. campaign finance law while supporting Bond’s congressional run by providing financial support beyond what legally allowed by law when she declared her candidacy last summer. According to WSJ sources familiar with the case, investigators are looking into whether Salame provided “excessive gifts“ or payments that would constitute illegal contributions made on behalf of Bond during her primary race against incumbent Rep Peter King (R-Nassau County).

Potential Penalties if Found Guilty

If found guilty of making illegal contributions either directly or indirectly via third parties such as family members or friends, then Salame could face fines or even jail time depending on how serious a violation it may be deemed by authorities given current election rules and regulations enforced by the Federal Election Commission (FEC). It should also be noted that similar investigations regarding bond financing violations could result in criminal charges being brought against other individuals associated with the case if sufficient evidence is found suggesting they knowingly participated in any wrongdoing as well.

Conclusion The former FTX exec is facing scrutiny for possible campaign finance violations completely separate from any issues related to their exchange operations and its subsequent dramatic collapse earlier this year – something that many exchanges have had difficulty recovering from during this tumultuous period for both digital assets and traditional markets alike