Former FTX Exec Pleads Guilty to Fraud Charges

Former FTX Exec Pleads Guilty to Fraud Charges
Table of Contents

The former co-CEO of FTX Digital Markets, Ryan Salame, has recently pleaded guilty to all charges related to defrauding the Federal Election Commission (FEC). At the same time, this includes the conspiracy of operating an unlicensed money-transmitting business. As per the announcement, Salame pleaded guilty before a judge in the US District Court for the Southern District of New York. This move makes him the fourth major player connected to the FTX exchange to take such an action. It is believed that the former FTX exec could face years in prison for the campaign finance charge.

Salame might have to serve additional time behind bars related to operating an unlicensed money-transmitting business. The campaign finance charges were related to contributions for the 2022 congressional campaign of the former exec’s girlfriend, Michelle Bond. As per the FEC record, the former FTX executive made two payments of $2,900 to support Bond’s campaign in Massachusetts.

Similarly, these donations included an additional two of the same amounts for the general election. Reports have also suggested that these contributions were made on behalf of a corporation, which is an active violation of the law.  Salame stated that he made political donations of almost $10 million and classified them as loans he never wished to repay. However, he pointed fingers at Sam Bankman-Fried and alleged that he supported this. Despite knowing the fact that it was prohibited, he did it using banks.

FTX Continues to Stay in the Shadows

FTX Continues to Stay in the Shadows

The former FTX executive might have pleaded guilty to all charges, but Assistant Attorney Samuel Raymond stated that he would proceed to make a submission to probation. However, this step would be taken following the criminal trial of Bankman-Fried scheduled on October 3rd. Currently, Salame would reportedly pay almost $6 million in fines to the US government, along with an additional $5 million to FTX debtors. He would also surrender two properties in Massachusetts along with the Porsche he owns.

However, Salame continues to remain free on a $1 million bond, with sentencing probably being held in March 2024, just a few days after the beginning of Bankman-Fried’s second criminal trial. Former Alameda Research CEO, Caroline Ellison, FTC co-founder, Gary Wang, and the exchange’s former engineer director Nishad Singh have pleaded guilty to all charges.


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews