Former FTX Exec Partner Charged With US Campaign Finance Violations

The legal troubles surrounding former FTX executive Ryan Salame intensified as his partner, Michelle Bond, faces charges for violating U.S. campaign finance laws. Bond, who ran an unsuccessful congressional campaign in 2022, is accused of using funds linked to the now-defunct cryptocurrency exchange to finance her campaign.

This latest indictment highlights the ongoing fallout from the collapse of the defunct exchange and the extensive reach of federal investigations into the company’s activities.

Ex-FTX Partner Faces US Campaign Violation Charges

Michelle Bond, 45, who previously worked with the cryptocurrency trade group Association for Digital Asset Markets, launched a campaign to represent New York’s 1st Congressional District in May 2022. Federal prosecutors allege that Bond accepted $400,000 from FTX through a “sham consulting agreement” arranged by Ryan Salame, a high-level executive at the exchange.

Notably, these funds were then allegedly funneled into her campaign, in direct violation of laws prohibiting corporate contributions to political campaigns. The indictment, unsealed by federal prosecutors in Manhattan, also accuses Bond of receiving additional funds from Salame, which were wired to her personal account and used to further support her campaign efforts.

Meanwhile, the charges against Bond include four criminal counts, such as causing and receiving unlawful contributions. These charges reflect the government’s ongoing scrutiny of FTX and its affiliates, even after the sentencing of the co-founder Sam Bankman-Fried to 25 years in prison for his role in a massive financial fraud.

Bond’s legal challenges come at a time when her partner, Salame, is already serving a 7-and-a-half-year prison sentence for his involvement in illegal activities at the defunct exchange. In a recent court filing, Salame claimed that prosecutors had reneged on an agreement to drop any investigation into Bond if he pleaded guilty.

However, the government dismissed these claims as false, leading to the unsealing of Bond’s indictment and her impending court appearance.

Ongoing Legal Fallout From The Crypto Exchange’s Collapse

The case against Michelle Bond underscores the far-reaching consequences of the FTX collapse and the federal government’s commitment to holding those involved accountable. Despite Salame’s plea deal, the investigation into the defunct exchange’s dealings continues, with new charges emerging against individuals connected to the firm.

Meanwhile, Bond’s indictment is just the latest development in a series of legal battles that have plagued former exchange executives and their associates. As Bond prepares to face these serious charges, the implications for other figures involved with the exchange remain uncertain.

The legal saga surrounding the defunct exchange is far from over, as prosecutors continue to uncover the extent of the wrongdoing tied to the platform’s collapse. Notably, the development also comes amid the FTX reorganization plan gained major support from the creditors.

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Rupam Roy

Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

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