- Michelle Bond has been charged with using $400,000 in unlawful campaign contributions from FTX during her 2022 congressional run
- The Department of Justice has alleged that these funds were obtained through a sham deal arranged by former FTX executive Ryan Salame
- Salame had requested a judge to halt indictment, citing a breached plea agreement
Michelle Bond, the former partner of jailed former FTX executive Ryan Salame, has been charged with using unlawful campaign contributions in connection with her unsuccessful run for Congress in 2022. The Department of Justice (DoJ) yesterday alleged that Bond used $400,000 worth of funds from FTX for the venture thanks to a sham deal arranged by Salame. The charges came on the same day as Salame asked a US judge to reconsider his conviction and prevent any potential indictment of Bond, alleging prosecutors failed to honor their promise to end the investigation into Bond as part of his plea agreement.
Fraudulent Consulting Contract Used, Says DoJ
In 2022, Bond, then serving as CEO of the Association for Digital Asset Markets, embarked on a political campaign to secure a seat in the US House of Representatives, aiming to represent New York’s first congressional district. Shortly after Bond announced her candidacy, Salame orchestrated what the DoJ alleges was a fraudulent consulting agreement between herself and FTX, under which Bond received a payment of $400,000, which she subsequently used to unlawfully finance her congressional campaign.
Between June and August 2022, Salame allegedly transferred several hundred thousand dollars into Bond’s personal bank account, which she funneled into her campaign, violating federal campaign finance laws that prohibit corporate contributions, excessive individual contributions, and conduit contributions, commonly known as straw donations.
Pair Knew What They Were Doing
The DoJ alleges that the pair were aware of the illicit nature of their actions, discussing how Salame would cover Bond’s campaign expenses, knowing that she would use his money to make substantial loans and contributions to her campaign.
In an attempt to cover up their misconduct, Bond is said to have made false statements to a congressional committee, the Federal Election Commission, and even to her employer, such as misleadingly describing the $400,000 payment from the Exchange as consulting income. However, in internal communications prepared for a meeting with the Trade Group’s board, Bond admitted that she did not actually work for the Exchange and that the funds were intended for her campaign.
Salame Accuses Government of Failing to Honour Plea Deal Conditions
Bond has been charged with one count of conspiracy to cause unlawful campaign contributions; one count of causing and accepting excessive campaign contributions; one count of causing and receiving an unlawful corporate contribution; and one count of causing and receiving a conduit contribution. Each of the crimes charged carries a maximum sentence of five years in prison.
The charges dropped on the same day that Salame filed an appeal against his sentence, arguing that Government lawyers reneged on their promise to discontinue investigating Bond if he pleaded guilty. Tthe US Attorney’s Office has reportedly rejected these claims, however, insisting that Salame was explicitly informed that his guilty plea would not halt the investigation into Bond’s conduct.
