The FBI conducted a search of former FTX executive Ryan Salame’s Washington home on Thursday morning, the New York Times reported, citing two people with knowledge of the matter. Days before cryptocurrency exchange FTX filed for bankruptcy and Bankman-Fried stepped down as CEO, Salame informed the Bahamas Securities Commission that client assets held at FTX Digital Markets may have been transferred to Alameda. Here are the details…
Raid the home of the executive of crypto exchange FTX
The FBI took action against FTX on Thursday, The New York Times reported. He searched the Washington DC home of Ryan Salame, a former executive of the bankrupt cryptocurrency exchange FTX. Salame, who previously ran FTX’s Bahamas operation, is now in the spotlight. Salame is under investigation as part of the ongoing investigation into the crypto exchange’s collapse. Authorities are investigating $24 million in political donations that Salame made during last year’s midterm elections. It also claims that most of the $90 million donated by former FTX employees came from client funds. This includes the campaign of Republican Representative George Santos.
Salame reportedly received $87 million in bonuses and loans from FTX’s sister company, Alameda Research. Hence, Salame’s wealth increased significantly during the crypto market boom. Court documents obtained by the Wall Street Journal after FTX collapsed in November revealed that Salame, then head of FTX Digital, tipped Bahamian officials into the cryptocurrency exchange using client funds to cover Alameda’s losses.
Millions of dollars donations to politicians
Prosecutors allege that Bankman-Fried hired executives, including Salame, who joined the company in 2021, to act as attorneys on behalf of his company and donate tens of millions of dollars to both Republican and Democratic candidates. During the so-called “PR tour” of FTX after its bankruptcy last year, donation statements attracted attention. At this point, Bankman-Fried said in an interview that he donated about the same amount to both parties.
“All of my donations to the Republicans were confidential,” said Bankman-Fried, talking about his political donations. He explained that political donations from companies and unions are protected in the Citizens United case of the US Supreme Court. This, he said, raises concerns about “corporate money” in politics. “Practically no one can grasp the idea that someone is really giving dark [money],” he said, adding that he hides donations to avoid public backlash. FTX was worth $32 billion before its collapse. As Cryptokoin.com reported, the founder of FTX, Sam Bankman-Fried, is facing a life sentence. Crimes include money laundering, conspiracy and bank fraud.
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