- Ryan Salame, FTX Digital Market's Co-CEO, tipped off regulators about what was going on at the exchange.
- The former crypto exec has contributed more than $23 million to conservative causes.
FTX's Ryan Salame played a crucial role in what US prosecutors are calling "one of the biggest financial frauds in American history."
Days before disgraced FTX founder Sam Bankman-Fried filed for Chapter 11 bankruptcy, Co-CEO Salame tipped off regulators on alleged malfeasance at the once-$32 billion crypto empire.
Bankman-Fried is now sitting behind bars in a reportedly rat-infested jail in the Bahamas on charges including campaign finance violation, securities fraud, wire fraud, and money laundering.
"We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto," Securities and Exchange Commission Chief Gary Gensler said in a statement.
Bankman-Fried notoriously told a Vox reporter "fuck regulators....they make everything worse" shortly after FTX filed for bankruptcy protection last month.
Although Salame may not generate the kind of name recognition or salacious headlines that Bankman-Fried has during FTX's meteoric rise and stunning downfall, the executive's behind the scenes persona is also notable.
The 29-year-old grew up in Sandisfield, Massachusetts, a town of just 1,000 people in the Berkshires. As a teen, he worked as a dishwasher at a local restaurant. His father was reportedly a Sandisfield selectman, while his mother was known for "coordinating youth activities," Liana Toscanini, a Sandisfield resident, told local news outlet The Berkshire Eagle.
"He started out washing dishes when he was 14 but then he did everything. He was very smart and energetic. He's just a wonderful person. A great kid." Martin Lewis, owner of Salame's former employer Martin's Restaurant, said in another report.
Salame studied at the Martial Arts Institute of the Berkshires since he was a young child, according to instructor Rebecca Childs. When he was 14 in South Korea, Salame placed first in a tournament at the Olympics of TaeKwonDo.
"I always thought he was a great leader," Childs, who hasn't seen Salame since highschool, told The Berkshire Eagle. "He was always very conscious of other people in that he wanted to help them grow. Seems like that's part of who he is. He's always seemed very caring and had a strong sense of right from wrong when I knew him"
After stints as a senior tax consultant for consulting firm EY and as a trader at stablecoin issuer Circle, Salame joined Bankman-Fried's quant trading firm Alameda Research in 2019 and later became FTX Digital Market's Co-CEO in 2021, according to his LinkedIn.
Around the same time in 2020, he began scooping up properties near his hometown, most of them restaurants. He purchased six pieces of real estate in the area to the tune of $6 million, according to The Berkshire Eagle. Salame, who is said to reside in the Bahamas now, owns several eateries, including The Olde Heritage Tavern, Firefly Gastropub & Catering Co., and Sweet Dreams bakery.
Salame has also contributed large sums to political campaigns.
The crypto tycoon gave over $23 million to Republican candidates and conservative PACs, according to non-profit OpenSecret.org, which has a public spreadsheet of political donations from FTX execs. Elsewhere, Bankman-Fried gave more than $46 million in bipartisan donations, some of which are now tied up in FTX's bankruptcy proceedings.
In response to Salame injecting millions into GOP causes, some locals boycotted the restauranteur's establishments.
"My actions will have zero impact on Mr. Salame's bottom line, but I will sleep better at night knowing that I didn't contribute to his profits," resident Paul Palansky said. "Perhaps others will consider doing the same."
Notably, Salame is in a relationship with failed GOP candidate and outspoken crypto advocate Michelle Bond.
FTX Digital Markets paid Bond at least $400,000 in consulting fees in the span of two years, according to financial disclosures, which were first reported by The Block. Bond, who was running to represent New York's First Congressional District, garnered support from the far-right and was endorsed by Donald Trump Jr., Kimberly Guilfoyle, and Senator Ted Cruz.
—Michelle Bond (@michellebond111) July 11, 2022
The exact details of Salame's role in FTX's downfall are still not known. Salame reportedly didn't know about any issues with the company and became "physically sick and threw up when he became aware of FTX's problems," the Wall Street Journal reported, citing people close to him.
Salame did not immediately respond to Insider's request for comment via LinkedIn.