Markets

Ex-FTX CEO Gets Residence by FBI Agents

FBI agents searched the home of Ryan Salameh, a former executive at the now-defunct FTX exchange, as part of their investigation into its collapse.

In a report Thursday, Bloomberg indicated that the agency may be looking into allegations of political donations.

How do FTX Execs drive political donations?

According to the a reportHowever, the purpose of the FBI’s visit to Salameh’s home in Maryland is unclear.

Since the former co-CEO has not faced any charges of criminal activity in the collapse of FTX. On the contrary, Sam Bankman-Fried faced 12 counts. It included eight counts of fraud, money laundering, and other charges related to the FTX crash.

Bankman-Fried pleaded not guilty to previous charges of fraud, money laundering and other charges related to the stock market crash.

Sam Bankman-Fried (SBF), former founder of the bankrupt FTX stock exchange | BeInCrypto

Sources revealed to the newspaper that Salama’s lawyer provided information related to campaign financing activity to the prosecution. That was before the research was conducted on Thursday.

Meanwhile, three other senior executives at FTX and its hedge fund, Alameda Research, have pleaded guilty to fraud.

Salameh’s contributions of $24 million to support the candidates made him an important political donor. The report claimed that his donations were primarily to the Republican Party. SBF has been said to be one of the largest political donors in the United States. His large financial contributions were mostly directed towards the Democratic candidates.

FTX’s Chief Engineering Officer Nishad Singh was another prominent political donor with ties to the stock exchange. Bloomberg confirmed that Singh pleaded guilty to fraud and campaign finance charges in February.

The collapse of affected monetary support

BeInCrypto previously cited reports from Open Secrets that Sam Bankman-Fried and other FTX executives contributed more than $70 million to political campaigns. During the 2021-2022 US elections, the SBF acquired approximately $40 million of that amount.

The report indicated that before joining Alameda in 2019 and FTX Digital Markets in 2021, Salameh was working at Ernst and Young. When FTX began to collapse in November, Salameh told regulators in the Bahamas that the money may have been mixed with Alameda Research to hide financial losses, shifting the responsibility to Bankman-Fried, Singh and FTX co-founder Gary Wang.

Meanwhile, FTX is still in the headlines months after its demise. according to reportsCreditors of Celsius Network LLC are seeking the assistance of a bankruptcy judge in revealing the identities of some FTX users. This week, bankruptcy lawyers also agreed to sell LedgerX. The derivatives trading platform owned by FTX will be sold to M7 Holdings.

Meanwhile, reports indicate that Tribe Capital is considering leading a $250 million funding round to revive the bankrupt exchange. However, Anthony Scaramucci of SkyBridge Capital, a former FTX proponent, claimed that it is impossible to restart the collapsed exchange.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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