Ryan Salame: FTX Co-CEO blew the whistle on Sam Bankman-Fried to authorities in the Bahamas
>
In the waning days of Sam Bankman-Fried’s leadership of FTX, his co-CEO denounced his financial misdeeds to authorities, according to new Bahamian court documents.
Bankman-Fried, 30, was arrested Monday in the Bahamas at the request of the US government and remains in custody after being denied bail.
He has been charged with eight criminal offenses, ranging from wire fraud to money laundering and conspiracy to commit fraud. If he is found guilty on all counts, Bankman-Fried could face decades in prison.
News documents show that on November 9, Ryan Salame, 29, co-CEO of FTX’s Bahamas operation, told island authorities that FTX was using client money to cover losses accumulated in Alameda Research, the hedge fund started by Caroline Ellison, Bankman-Fried’s girlfriend.
Ryan Salame became CEO of FTX in September 2021 and has referred to Sam Bankman-Fried as an “inspiration” in the past.
Bankman-Fried, 30, was arrested Monday in the Bahamas at the request of the US government, and remains in custody after being denied bail.
Salame told the Bahamas Securities and Exchange Commission that transferring funds in this manner was contrary to the normal operations of the company.
The documents say in one section: “Such transfers were not permitted and therefore may constitute misappropriation, theft, fraud, or some other crime.”
The Massachusetts native went on to point out that only Bankman-Fried, or his lieutenants, co-founder, Ziziao (Gary) Wang or Nishat Singh have the clearance to conduct such transactions.
The documents name Bankman-Fried, Wang and Singh as residents of the Bahamas, while Salame resides in Washington DC. She hasn’t spoken publicly since FTX began to collapse in early November.
On November 6, he tweeted: ‘It’s so powerful to know who your friends are! Very excited to grow with them long term. It’s not hard to really figure out who cares about customers and who doesn’t if you look past the craziness.
FTX engineering director Nishad Singh was named as one of those with the ability to authorize the use of client money to pay off debts, as was FTX co-founder and CTO Gary Wang.
As recently as August, Salame publicly endorsed Bankman-Fried, saying in a tweet showing a video of the founder, “Absolutely honored to work for this man, one of the most loving/humble/genuine people I’ve ever met.”
A graduate of the University of Massachusetts-Amherst, Salame began his career in finance with Ernst & Young in Boston and later worked for Alameda Research in Hong Kong.
She graduated from UMass-Amherst with a bachelor’s degree in Accounting and Economics with a concentration in African American Studies, and later earned a master’s degree from Georgetown. Salami is also a fourth degree black belt in Tae Kwon Do.
A profile on the UMass-Amherst website describes Salame as “assisting Sam Bankman-Fried with the founding and creation of FTX Trading Ltd, the parent company of FTX Digital Markets Ltd (FDM) before becoming CEO of FTX.” Digital Markets on September 1, 2021.’
The bio goes on to say, “Ryan has also been inspired by FTX founder Sam Bankman-Fried and his desire to have a powerful and positive impact on the world through philanthropy.”
Ryan Salame, left, pictured with his girlfriend Michelle Bond, Donald Trump Jr and Kimberly Guilfoyle earlier this year.
In 2022, Salame donated $100,000 to his girlfriend’s campaign for congress on Long Island.
On his LinkedIn page, Salame is still listed as co-CEO of FTX Digital Markets.
On his LinkedIn page, Salame is still listed as co-CEO of FTX Digital Markets.
In March 2022, Salame was appointed president of FTX Property, during which time he signed on for a penthouse in the Bahamas that was to be used by “key personnel.”
The huge apartment, accessed by two separate elevators, features a private terrace with a bar and Jacuzzi spa, according to the resort’s website. It was rumored to be the home of Caroline Ellison.
In early November, current FTX CEO John J. Ray III told a US bankruptcy court in November that a $55 million loan made to Salame by Alameda Research was outstanding.
At the same time, Ray revealed that Alameda loaned FTX engineer Nishad Singh $543 million.
In addition to his crypto career, Salame has amassed a portfolio of high-end restaurants in his home county of Berkshire in Massachusetts. Those are worth about $6 million, reports the Berkshire eagle.
Restaurants do not appear to have been affected by the FTX collapse.
In terms of politics, Salame parted ways with his partner, Bankman-Fried, long ago to spend $23.6 million, most of it to help Republicans.
Salame founded a hybrid super PAC earlier this year called American Dream Federal Action.
Salame previously worked for Bankman-Fried’s girlfriend, Caroline Ellison, pictured here, in Hong Kong.
He spent $3.4 million to support Illinois Republican Congressman Rodney Davis, $2 million to support Republican Senate candidate Katie Britt of Alabama and $1.2 million each to support Arkansas Republican Sen. John Boozman and Brad Finstad, a Republican candidate for Congress in Minnesota.
The PAC describes itself online as an “organization dedicated to electing forward-thinking candidates, those who want to protect America’s long-term economic and national security by advancing smart policy decisions now.”
Earlier this year, Salame founded a pro-crypto political lobby group along with Anthony Scaramucci, who served as Donald Trump’s director of communications for 11 days.
salami said above the washington examiner that much of the money was designed to ensure that the US government was better equipped to fight another potential pandemic.
Salame said: ‘Living through and going through COVID, it became abundantly clear that we are not prepared for pandemics and we are not prepared for… future viral outbreaks. It’s one of the best things we can do for the future.’
He is currently in a relationship with the 43-year-old Republican candidate for Congress from New York, Michelle Bond. During his campaign on Long Island this year, Salame donated $100,000 to his account.
Bond called herself a “strong supporter of President Trump’s America First mentality and policies” in campaign literature. FTX’s co-CEO had no formal role in the campaign that ultimately failed.
At a press conference Tuesday, US Attorney Damian Williams in New York called FTX’s activities “one of the largest frauds in American history” and said the investigation is ongoing and moving quickly.
Bankman-Fried has fallen hard and fast from the top of the cryptocurrency industry that he helped evangelize. FTX filed for bankruptcy on November 11, when it ran out of money after the cryptocurrency equivalent of a bank run.
Before the bankruptcy, he was seen by many in Washington and on Wall Street as a digital currency wunderkind, someone who could help bring them mainstream, in part by working with lawmakers to bring more oversight and trust to the industry.