FTX Exec’s Partner Charged in Campaign Finance Scandal

Michelle Bond, partner of former FTX executive Ryan Salame, has been charged by the Department of Justice (DOJ) with multiple campaign finance violations. These charges stem from Bond's 2022 run for a seat in the U.S. House of Representatives, during which she allegedly used funds from FTX to illegally finance her campaign.

It's all true but I just made a court filing I'm pretty nervous about because I know it means the most powerful body in the world is going to come at me and my loved ones again, but I'm hoping it encourages more people to be honest and tell the truth and expose un-American… — Ryan Salame (@rsalame7926) August 21, 2024

The DOJ alleges that Bond and Salame orchestrated a scheme where Bond received $400,000 through a fake consulting agreement with FTX. This money was then funneled into Bond's campaign, violating campaign finance laws. Additionally, Salame reportedly wired hundreds of thousands of dollars to Bond's personal account between June and August 2022. These funds were also used for her campaign, further violating legal restrictions.

Bond faces four charges: conspiracy to cause unlawful campaign contributions, causing and accepting excessive contributions, receiving an unlawful corporate contribution, and receiving a conduit contribution. Each charge could result in up to five years in prison, meaning Bond could face a substantial prison term if convicted on all counts.

Meanwhile, Ryan Salame has attempted to withdraw his guilty plea. He claims that the government broke a deal by resuming its investigation into Bond, which was supposed to be dropped. Salame's legal team argues that the DOJ has not honored its agreement and has now indicted Bond despite the supposed deal.

The government has responded by asking Judge Lewis Kaplan to dismiss Salame's motion. Judge Kaplan, who also oversaw the trial of former FTX CEO Sam Bankman-Fried, is being asked to reject Salame's claims. The government's lawyers argue that Salame's assertions are false, and that there was never an agreement to halt the investigation into Bond. They assert that Salame is trying to avoid responsibility for his role in what they call an "unprecedented" illegal campaign finance scheme.

Salame is scheduled to begin a seven-and-a-half-year prison sentence in October. His involvement in the FTX scandal has made him one of several high-profile figures facing jail time following the exchange's collapse. Former FTX CEO Sam Bankman-Fried was found guilty on all charges related to the exchange’s downfall and was sentenced to 25 years in prison earlier this year.

Bond's connections to the cryptocurrency industry extend beyond her relationship with Salame. In June, she launched Digital Future, a think tank focused on public policy and advocacy in cryptocurrency, fintech, and artificial intelligence. Despite her legal troubles, Bond remains active in these industries, highlighting the complex relationship between technology, finance, and politics.

U.S. Attorney Damian Williams, who is prosecuting the case, accused Bond and her partner of using corporate funds to finance her campaign and lying to cover it up. Williams emphasized the seriousness of the charges, noting the broader implications for political finance regulations.

As the legal case against Bond unfolds, it adds another layer to the ongoing fallout from FTX's collapse. Once a dominant force in the cryptocurrency world, FTX's downfall has led to numerous legal battles and criminal charges. With Bond now facing the possibility of significant prison time, the consequences of FTX's collapse continue to impact both the financial and political landscapes.