Former FTX executive Ryan Salame’s home was searched by FBI agents as part of the sweeping investigation into the cryptocurrency exchange’s collapse and its attempts to exert political influence in Washington.
(Bloomberg) — Former FTX executive Ryan Salame’s home was searched by FBI agents as part of the sweeping investigation into the cryptocurrency exchange’s collapse and its attempts to exert political influence in Washington.
Federal Bureau of Investigation agents went to Salame’s Maryland home on Thursday morning, according to people familiar with the matter. It wasn’t immediately clear what the agents were looking for.
According to two people with knowledge of the investigation, Salame’s attorney had spoken with prosecutors on his behalf and handed over information relating to campaign finance activity prior to Thursday’s search. Salame was a prolific political donor, shelling out $24 million, largely in support of Republican candidates.
Jason Linder, a lawyer for Salame, didn’t respond to a request for comment.
Salame, the former co-chief executive officer of FTX Digital Markets, the once-thriving crypto empire’s Bahamian subsidiary, has not been accused of any crime. But Manhattan federal prosecutors have charged FTX co-founder Sam Bankman-Fried with orchestrating a massive fraud. Though Bankman-Fried has pleaded not guilty, three other top executives at FTX and its affiliated hedge fund, Alameda Research, have pleaded guilty to fraud and are cooperating with authorities.
The fraud charges largely stem from the alleged misuse of billions of dollars in FTX customer funds for Alameda trading or personal expenses. A superseding indictment unsealed by prosecutors on Feb. 23 also described a scheme to use political donations to illegally influence crypto regulations by Bankman-Fried and two unnamed co-conspirators.
While not identified, FTX engineering chief Nishad Singh and Salame were among the largest political donors in the FTX universe. Singh pleaded guilty to fraud and campaign finance charges on Feb. 28.
The focus on Salame after a relatively quiet public period in the FTX investigation suggests prosecutors are still bolstering their case around the political ties the company — once home to one of the world’s biggest crypto exchanges — forged in Washington.
Salame worked at Ernst and Young before joining Alameda in 2019 and then FTX Digital Markets in 2021. The Massachusetts native also spent more than $6 million on five restaurants, including a dessert shop and food truck, in the small town of Lenox. The assets of executives and the donations they made to political campaigns and charities have been targeted by prosecutors and FTX’s new management, which is shepherding the company through bankruptcy proceedings.
Salame, a 2015 graduate of the University of Massachusetts Amherst, lives in Maryland and is in a relationship with Michelle Bond, a crypto advocate and 2022 Republican congressional candidate. Among the candidates Salame supported was George Santos, then a little-known Long Island Republican who has since become a household name for lying about key parts of his background. Salame also helped introduce donors to Santos — including his parents and other FTX executives, Bloomberg previously reported.
As FTX began to fall apart in November, Salame tipped off regulators in the Bahamas that funds had been possibly co-mingled with Alameda Research to cover financial losses, according to filings in the bankruptcy case. Salame also alleged that only three executives — Bankman-Fried, Singh and FTX co-founder Gary Wang — had the ability to authorize such transfers.
(Updates attempt to reach lawyer for comment, background)
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