Former FTX Exec Home Searched by FBI

Former FTX Exec Home Searched by FBI

The FBI searched the Potomac, Maryland home of former FTX executive Ryan Salame on April 27, according to sources familiar with the matter. The search comes as authorities investigate Salame’s political contributions during last year’s midterm elections, allegedly involving stolen customer money.

The Raid

The FBI conducted a search of Ryan Salame’s $4 million house in Potomac, Maryland, on the morning of April 27. There is no information yet on what the authorities were searching for. Salame was the co-CEO of FTX Digital Markets, FTX’s affiliate in the Bahamas. He also worked at Alameda Research and was part of Sam Bankman-Fried’s inner circle.

Authorities are investigating Salame’s $24 million in political contributions during last year’s midterm elections.

“We allege that someone stole the bulk of the overall $90 million contributed by ex-FTX employees, including to Republican Congressman George Santos’ campaign, from customer money.”

Salame was the fourth-largest receiver of these payments, receiving $87 million in total compensation.

FTX’s new management, led by attorney and bankruptcy specialist John Ray III, stated that it would further investigate its rights to pursue potential legal action against the recipients and their subsequent transferees. Ongoing efforts would result in the identification of additional assets, liabilities, and transfers.

Allegations against Bankman-Fried

Prosecutors believe that Bankman-Fried recruited personnel, including Salame, to serve as proxies for his company and give tens of millions of dollars to both Republican and Democratic politicians. The raid comes amid a long-running federal probe into the exchange’s collapse, which occurred in a spectacular manner last November. 

US authorities have charged former FTX CEO Sam Bankman-Fried, and a number of FTX insiders have all agreed to cooperate as the case progresses toward a formal trial. FTX was valued at $32 billion before its demise. On many counts of money laundering, conspiracy, and wire fraud, Bankman-Fried risks life in prison.