Yet another FTX-related individual pleads guilty to criminal charges.
Ryan Salame, who formerly served as the co-CEO of FTX Digital Markets, entered a guilty plea on September 7th, making him the latest executive linked to the now-bankrupt crypto exchange FTX to face legal repercussions.
Salame now faces the possibility of serving time for violating campaign finance laws and his involvement in an unauthorized money transmission venture.
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It is worth noting that all charges are tied to Salame's financial contributions to the 2022 congressional campaign of Michelle Bond, his girlfriend.
Records reveal that Salame made four donations of $2,900, twice for the primary election and another two times for the general election in Massachusetts. Reports also indicate he made illegal contributions through FTX Digital Markets.
When talking about the matter, Salame reportedly admitted to spending millions to make "political contributions."
I made $10 million in political contributions and called them loans, which I never intended to repay. This was supported by Sam Bankman-Fried. I knew it was prohibited.
Former co-CEO of FTX Digital Markets also admitted that he used banking systems for unlicensed transactions.
As Alameda’s head of settlements, I used banks, one used in California. I was unaware licensure was required. But now I know.
After pleading guilty, Assistant US Attorney Samuel Raymond stated that a submission for probation would be made following the criminal trial of Sam Bankman-Fried, scheduled for October 3rd. Salame has agreed to forfeit two Massachusetts properties, a Porsche, and will pay approximately $11 million, $6 million in fines to the US government, and over $5 million to FTX debtors.
As of the latest report, Salame remains out on a $1 million bond. His sentencing is likely to be held on March 6th, 2024, just a few days before the second criminal trial of Sam Bankman-Fried.
It’s worth noting that several other executives from FTX and Alameda Research, such as Caroline Ellison, Gary Wang, and Nishad Singh, have also pleaded guilty to federal fraud charges. However, Bankman-Fried has entered a plea of not guilty.
The guilty plea by Ryan Salame sheds more light on the intricate web of legal challenges facing executives connected to the defunct crypto exchange FTX. As legal proceedings advance, the cryptocurrency community will be closely watching how these cases impact broader industry regulations.
