Michelle Bond to proceed to trial on campaign finance allegations tied to FTX funds
Michelle Bond, whose husband is former FTX executive Ryan Salame, has lost her attempt to dismiss campaign finance charges, with a federal judge ruling against her motion.
The spouse of ex-FTX executive Ryan Salame, Michelle Bond, must now proceed to face criminal campaign finance allegations following a judicial decision that dismissed her contention that federal prosecutors had guaranteed Salame her exoneration in exchange for his guilty plea.
On Wednesday, Manhattan federal judge George Daniels rejected Bond's motion seeking dismissal of charges alleging she unlawfully received funds from the cryptocurrency exchange FTX, which is now in bankruptcy, to finance her failed 2022 congressional campaign.
In his ruling, Daniels stated there existed "no ambiguity" regarding the conditions outlined in Salame's written plea agreement. "As the evidence made clear, all parties, including the defendants and their counsel, were aware that the Government had not promised Bond's immunity by the time Salame entered his guilty plea," he said.
The 2022 high-profile implosion of FTX sent shockwaves throughout the cryptocurrency sector. This judicial order may pave the way for what could be the final criminal proceeding connected to FTX, effectively bringing closure to one of the most significant scandals in cryptocurrency history.
Ryan Salame, who served as co-CEO of FTX Digital Markets, the Bahamian subsidiary of FTX, received a seven and a half year prison sentence in May 2024 following his guilty plea to charges of conspiring to make illegal political contributions and operating an illegal money transmitter.
According to Bond's claims, Manhattan US Attorney Danielle Sassoon informed both her and Salame's attorney during a 2023 meeting that "without making promises outside the four corners of the plea agreement," prosecutors would "conclude the aspects of our investigation that concern RS (Ryan Salame), but not SBF (Sam Bankman-Fried)" if Salame entered a guilty plea.
Nonetheless, Judge Daniels determined in his written opinion that the available evidence "undisputably indicates that the Government did not promise to not prosecute Bond in exchange for Salame's guilty plea."
The judge further noted that Gina Parlovecchio, Bond's previous attorney, "admitted as much under oath — testifying that, regardless of what discussions were had, she did not believe Sassoon's statement was a promise at the time it was made."
Federal prosecutors initially brought allegations in August 2024 claiming that following Bond's announcement of her candidacy for a House seat in 2022, Salame arranged a consulting agreement between FTX and Bond, through which she received payment of $400,000.
According to the government's allegations, Bond subsequently utilized these funds to unlawfully support her congressional campaign, supplemented by several hundred thousand dollars in additional transfers that Salame sent to her during the period from June through August 2022.
According to prosecutors' claims, Bond made efforts to hide the origin of these payments and provided false information to both a congressional committee and the Federal Election Commission.
The charges Bond faces include conspiring to cause unlawful political contributions, causing and receiving a straw donor contribution, along with causing and accepting excessive campaign contributions and an unlawful corporate contribution.
All four of the charges that Bond is confronting carry a potential maximum sentence of five years in prison.