New York — Ryan Salame, the former co-chief executive of FTX Digital Markets, has pleaded guilty to charges of making illegal campaign contributions and operating an unlicensed money transfer business. This is the latest development in the ongoing legal battle surrounding FTX, a cryptocurrency exchange.
A Series of Guilty Pleas
Salame is the fourth high-ranking official connected to FTX and its affiliates to plead guilty to criminal charges. In exchange for his guilty plea, Salame has agreed to forfeit assets worth up to $1.55 billion. Additionally, he may be called as a witness in the trial of FTX founder Sam Bankman-Fried, who is currently facing charges related to various crimes allegedly committed during his time as the head of the popular digital currency trading platform.
Illegal Campaign Contributions
During his plea hearing in Manhattan, Salame admitted to using millions of dollars from a hedge fund controlled by Bankman-Fried to make illegal political contributions in both 2020 and 2021. The purpose of these contributions, Salame confessed, was to support political initiatives favored by Bankman-Fried. Prosecutors revealed that they had obtained private messages in which Salame expressed Bankman-Fried’s desire to back politicians from both major parties who were supportive of cryptocurrency while seeking to remove lawmakers who were against it.
The case continues to unfold as prosecutors pursue justice in this wide-reaching scandal involving FTX and its executives.
A Legal Update
A lawyer representing Salame, Jason Linder, has not responded to an email requesting comment. Salame’s sentencing is tentatively scheduled for March and he has been granted release from federal custody until then.
Bankman-Fried, on the other hand, is currently awaiting trial on various charges. It is alleged that he defrauded customers by misusing their funds to cover personal expenses, make illegal campaign contributions, and conduct trades through a separate crypto hedge fund called Alameda Research.
Three other executives closely connected to Bankman-Fried, namely Caroline Ellison, Nishad Singh, and Gary Wang, have already pleaded guilty in relation to these charges. Bankman-Fried’s trial is set to take place in October.
Despite the allegations, Bankman-Fried maintains his plea of not guilty. While he was out on bail awaiting trial, he was recently incarcerated following a judge’s ruling that he had tried to influence potential witnesses by sharing Ellison’s private writings with news organizations.
Prior to the collapse and subsequent bankruptcy of FTX in November, Bankman-Fried was highly regarded as one of the most prominent cryptocurrency entrepreneurs in the United States. His company even enlisted celebrities like Larry David from “Curb Your Enthusiasm” to appear in their television advertisements.
It is worth noting that Bankman-Fried and individuals affiliated with his companies, including Salame, were significant contributors to various political campaigns. Salame himself donated millions of dollars in support of Republican candidates seeking office.
