In a recent development, authorities in New York are reportedly probing Ryan Salame, former co-CEO of FTX Digital Markets, for potential violations of campaign finance laws in the United States. The investigation focuses on Salame and his girlfriend Michelle Bond, a Republican candidate who ran for New York’s 1st congressional district in 2022 but failed to progress beyond the Republican primary.
While unrelated to the federal charges faced by others associated with FTX and its subsidiaries after the exchange filed for bankruptcy in November 2022, this investigation delves into the financial connections between Salame and Bond during her congressional campaign. The New York Times reported on July 11 that they may have exceeded the federal limits on contributions.
According to records from the Federal Election Commission (FEC), the maximum amount individuals could donate to a candidate for federal office in the primary campaign and general election of 2022 was $2,900 each. FEC records reveal that Salame made two donations of $2,900 each to support Bond’s primary campaign in Massachusetts, along with two more donations of $2,900 each for the general election.
Furthermore, Bond herself personally contributed over $145,000 to her campaign and loaned it more than $877,000. This investigation aims to determine whether these financial transactions violated campaign finance regulations.
The Federal Bureau of Investigation reportedly conducted a search of Salame’s residence in April, although he has not been charged with any offenses related to his time at FTX Digital Markets, where he served as co-CEO from December 2021. It remains unclear what role, if any, Salame might play in the upcoming criminal trials of FTX’s former CEO Sam Bankman-Fried, scheduled to commence in October 2023 and March 2024.
This investigation adds another layer of complexity to the legal challenges faced by FTX and its key executives.
The exchange’s former CEO, Sam Bankman-Fried, is awaiting two criminal trials related to alleged crimes, while FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison have already pleaded guilty to fraud charges in December 2022.
As authorities delve deeper into this campaign finance investigation, it raises questions about the intersection of cryptocurrency, political contributions, and regulatory compliance. The outcome of this case could potentially have implications for the regulation of cryptocurrency exchanges as well as campaign finance rules in the United States.