Former FTX executive pleads guilty to criminal charges
investmentnews.comFormer FTX executive Ryan Salame pleaded guilty to criminal charges stemming from the collapse of the cryptocurrency exchange.
Salame, who was the co-chief executive of FTX’s Bahamas subsidiary before the exchange imploded last November, appeared in Manhattan federal court on Thursday afternoon. Flanked by lawyers and wearing a blue suit and Bitcoin socks, Salame pleaded guilty to one campaign finance violation and one charge of operating an illegal money-transmitting business.
Salame’s plea agreement did not include a promise to testify against Sam Bankman-Fried, who goes on trial for fraud next month, but the deal will likely increase the pressure on the FTX co-founder. Prosecutors claim Bankman-Fried orchestrated a yearslong scheme to misuse FTX customer funds for personal expenses, high-risk bets through affiliated hedge fund Alameda Research and political donations meant to influence US crypto regulation before the exchange’s collapse. Bankman-Fried has pleaded not guilty.
Three of Bankman-Fried’s other close associates — Alameda Chief Executive Officer Caroline Ellison, FTX co-founder Gary Wang and engineering chief Nishad Singh all previously pleaded guilty and agreed to testify in the hopes of receiving lighter sentences.
Each of the counts to which Salame, 30, pleaded guilty carries a maximum sentence of five years in prison. Though Salame agreed to a $1.55 billion forfeiture order — dwarfing even the $700 million prosecutors are seeking from Bankman-Fried — the government said it would pursue that amount only if Salame lied or failed to surrender a much smaller amount in assets, including $6 million in cash and a Porsche 911 Turbo.
Salame, who joined Alameda in 2019, was a member of Bankman-Fried’s inner-circle
Read more on investmentnews.com
