A huge scandal has erupted around Michelle Bond, a former political activist, and lawyer for the Securities and Exchange Commission of the United States, related to her 2022 election campaign. She allegedly received illegal contributions to the program. Prosecutors link this to her former partner and ex-CEO of FTX Digital Markets, Ryan Salame.
He is under investigation and has already pled guilty to campaign finance violations and operating an unlicensed business. His attorneys say he had a plea deal meant to protect Bond from prosecution, which an indictment filed in Manhattan federal court seems to refute. According to prosecutors, she received large sums of money from Salame, masquerading as personal campaign funds, a violation of the law about funding such programs. One of the critical pieces of evidence in the case was a text message exchange in which Bond thanked Salame for paying a consulting organization.
This case was a major blow to her reputation. Further, this case makes it relevant and necessary to probe the funding of a political campaign for transparency, much more so with the advent of cryptocurrency technology, wherein it is easy to hide the source of funds. The allegations also question the legitimacy of Bond’s attempts to become a congresswoman, despite receiving enormous financial backing from the crypto industry, which invested millions into her campaign. She was ultimately defeated in the election, securing less than 30% of the vote. However, all the best efforts could not help the woman win it. Once again, this scandalous story replenishes the agenda regarding the legal and compliance issues within the industry.