FTX Executive’s Partner Indicted for Campaign Finance Fraud

Michelle Bond, the girlfriend of former FTX executive Ryan Salame, has been accused of breaching campaign financing rules. According to the Department of Justice, Bond used funds acquired through a fake consulting contract with FTX to finance her campaign for a seat in the U.S. House of Representatives in 2022. These allegations also involve Salame, who allegedly transferred hundreds of thousands of dollars to Bond’s account to finance her campaign.

FTX Executive’s Partner Charged in Campaign Finance Scandal

Bond and Salame created a fake consulting contract, which resulted in Bond getting $400,000 from FTX. The DOJ stated that this money was spent to fund her political campaign against the federal campaign finance laws. Also, Salame reportedly transferred large amounts of cash to Bond between June and August 2022, which he used to finance her campaign with illegitimate funds.

Salame, facing a seven-and-a-half-year prison sentence, tried to withdraw his guilty plea, claiming that the government assured him that they would not prosecute Bond. His lawyers claimed the government breached this agreement, but federal prosecutors described these claims as “false” and “not based on fact.”

The four charges against Bond relate to campaign finance violations, which, if convicted, could result in five years in prison. The charges include conspiracy to make unlawful contributions during a campaign and accepting more than the allowed contributions. U.S. Attorney Damian Williams noted that Bond and her partner tried to mislead the public and Congress by using illicit funds.

Bond has also built a career in the cryptocurrency industry beyond her affiliation with Salame, co-founding Digital Future, a policy and research organization on crypto, fintech, and AI. This development adds to the consequences of the FTX’s collapse, wherein several executives, including former FTX CEO Sam Bankman-Fried, have been jailed for their involvement in the scandal.

Judge Urged to Reject Salame’s Guilty Plea Withdrawal

The government has asked Judge Lewis Kaplan to dismiss Salame’s motion to set aside his guilty plea. The prosecution stated that Salame seeks to escape severe punishment by making fabricated allegations. They have argued that there was no agreement to drop the charges against Bond.

Bond’s indictment only adds to the legal issues surrounding the FTX scandal. The charges against her demonstrate the government’s unwavering stance in ensuring individuals are brought to book for flouting campaign finance laws. Bond may be subjected to legal penalties during the trial if he is convicted of the charges.

Salame’s sentencing is scheduled to begin in October, marking another chapter in the ongoing legal battles linked to FTX’s downfall.

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