Former FTX’s Executive Ryan Salame prepares to plead
guilty to criminal charges to the cryptocurrency exchange’s collapse. This turn
of events comes after extended negotiations with the prosecutors. The executive
is scheduled to appear in a Manhattan federal court today (Thursday) for the
guilty plea, according to the people familiar with the matter.
Salame served as
Co-Chief Executive of FTX’s Bahamas subsidiary. His decision to plead guilty
follows closely behind the impending trial of Sam Bankman-Fried, who faces
allegations of orchestrating a multi-billion fraud scheme. Prosecutors contend
that Bankman-Fried misappropriated FTX customer funds for personal
expenditures, high-risk investments in Alameda Research, and political
donations.
Throughout his tenure at
FTX, Salame was not only a key executive of Bankman-Fried but also a prolific
contributor to Republican political campaigns. According to a report by
Bloomberg, he reportedly channeled USD $24 million to political parties.
Besides that, Prosecutors indicate that Bankman Fried used Salame alongside
other FTX executives as “straw donors”.
It remains to be seen
whether Salame’s intended guilty plea signifies his willingness to cooperate
with the prosecutors and testify against Bankman-Fried. Three of
Bankman-Fried’s close associates – Caroline Ellison, CEO of Alameda; Gary
Wange, FTX’s Co-Founder; and Nishad Singh, engineering chief – have already
pleaded guilty and are cooperating with the authorities.
Last month, Finance
Magnates reported that
although Salame had not been formally charged in connection with FTX’s
collapse, he may face
violations related to political donation regulations. Salame is alleged to have received substantial
loans from Alameda Research, the hedge fund affiliated with FTX.
Further complicating
matters, authorities reportedly traced a private jet purchased by Salame during
his tenure at FTX. Sources suggest that the jet may become part of the plea
deal, either surrendered or sold to help recover customers’ funds.
Additionally, Salame is said to have acquired five restaurants in Massachusetts
worth USD $6 million after joining the company.
Bankman-Fried Appeals
Jail Decision as Trial Nears
Meanwhile, Bankman-Fried
is contesting
the decision by Judge
Lewis Kaplan to imprison him before the trial begins. This move comes in
response to the accusations of attempting to tamper with witnesses in the
lawsuit related to FTX’s collapse. His lawyers initiated an appeal at the 2nd
US Circuit Court of Appeals, contesting the judge’s decision to revoke his bail.
In light of this matter,
a recent court order obtained by Coindesk indicates that Sam Bankman-Fried’s
legal defense team had been granted unlimited prison visits to consult with the
disgraced entrepreneur. This decision was reportedly aimed to facilitate trial
preparation as Bankman-Fried’s criminal trial is set to commence on October 3.
Former FTX’s Executive Ryan Salame prepares to plead
guilty to criminal charges to the cryptocurrency exchange’s collapse. This turn
of events comes after extended negotiations with the prosecutors. The executive
is scheduled to appear in a Manhattan federal court today (Thursday) for the
guilty plea, according to the people familiar with the matter.
Salame served as
Co-Chief Executive of FTX’s Bahamas subsidiary. His decision to plead guilty
follows closely behind the impending trial of Sam Bankman-Fried, who faces
allegations of orchestrating a multi-billion fraud scheme. Prosecutors contend
that Bankman-Fried misappropriated FTX customer funds for personal
expenditures, high-risk investments in Alameda Research, and political
donations.
Throughout his tenure at
FTX, Salame was not only a key executive of Bankman-Fried but also a prolific
contributor to Republican political campaigns. According to a report by
Bloomberg, he reportedly channeled USD $24 million to political parties.
Besides that, Prosecutors indicate that Bankman Fried used Salame alongside
other FTX executives as “straw donors”.
It remains to be seen
whether Salame’s intended guilty plea signifies his willingness to cooperate
with the prosecutors and testify against Bankman-Fried. Three of
Bankman-Fried’s close associates – Caroline Ellison, CEO of Alameda; Gary
Wange, FTX’s Co-Founder; and Nishad Singh, engineering chief – have already
pleaded guilty and are cooperating with the authorities.
Last month, Finance
Magnates reported that
although Salame had not been formally charged in connection with FTX’s
collapse, he may face
violations related to political donation regulations. Salame is alleged to have received substantial
loans from Alameda Research, the hedge fund affiliated with FTX.
Further complicating
matters, authorities reportedly traced a private jet purchased by Salame during
his tenure at FTX. Sources suggest that the jet may become part of the plea
deal, either surrendered or sold to help recover customers’ funds.
Additionally, Salame is said to have acquired five restaurants in Massachusetts
worth USD $6 million after joining the company.
Bankman-Fried Appeals
Jail Decision as Trial Nears
Meanwhile, Bankman-Fried
is contesting
the decision by Judge
Lewis Kaplan to imprison him before the trial begins. This move comes in
response to the accusations of attempting to tamper with witnesses in the
lawsuit related to FTX’s collapse. His lawyers initiated an appeal at the 2nd
US Circuit Court of Appeals, contesting the judge’s decision to revoke his bail.
In light of this matter,
a recent court order obtained by Coindesk indicates that Sam Bankman-Fried’s
legal defense team had been granted unlimited prison visits to consult with the
disgraced entrepreneur. This decision was reportedly aimed to facilitate trial
preparation as Bankman-Fried’s criminal trial is set to commence on October 3.