- Ryan Salame has entered negotiations for a guilty plea regarding allegations of campaign finance violations
- Salame could cooperate against co-founder Sam Bankman-Fried.
- Colleagues Gary Wang, Caroline Ellison, and Nishad Singh have already pleaded guilty to the alleged multibillion-dollar fraud
Former co-chief executive of FTX, Ryan Salame, is reportedly in discussions with federal prosecutors regarding a potential guilty plea in connection to criminal charges stemming from the downfall of the cryptocurrency exchange. Bloomberg cites individuals familiar with the matter, who chose to remain anonymous due to the non-public nature of the discussions, as revealing that Salame is negotiating to plead guilty to charges including violations of campaign finance laws. Little has been heard of the former executive since the fall of the exchange, with many believing he was already helping prosecutors with charges against Sam Bankman-Fried.
Salame Could Join Other Plea Dealers
Several of Salame’s former associates, namely Gary Wang, Caroline Ellison, and Nishad Singh, have already admitted their roles in an alleged multibillion-dollar fraud related to the now-bankrupt crypto enterprise. These individuals are expected to serve as key witnesses in the government’s case against Bankman-Fried. It is unclear at this point whether Salame will cooperate with prosecutors and offer testimony against his former colleague, with a plea expected to be entered as early as next month.
Despite these developments, Salame’s attorney has not yet provided a comment on the matter. Salame himself has not faced prior charges in connection to FTX, and details of any potential plea agreement remain unconfirmed.
Should Salame proceed with a guilty plea, the pressure on Bankman-Fried, who is scheduled to stand trial in October, would significantly escalate. The former CEO has maintained his plea of not guilty against all charges brought against him.
Political Contributions Examined
The prosecution has characterized the case as one of the largest financial frauds in American history, accusing Bankman-Fried of orchestrating an extensive fraud scheme at FTX and misappropriating billions in customer funds. The likelihood of a strong case against him is bolstered by testimonies from his former acquaintances, many of whom were part of his inner circle in the exclusive Albany enclave in The Bahamas.
Salame, who previously led FTX’s Bahamas subsidiary, has been under close scrutiny as part of extensive criminal and regulatory investigations. He was also known for his substantial political contributions, having donated $24 million in support of Republican candidates during his tenure at FTX.
One notable recipient of Salame’s political contributions was Michelle Bond, his girlfriend at the time, who ran for a New York congressional seat in the 2022 GOP primary. Although Bond’s campaign did not succeed, it received substantial financial support from Salame and other FTX figures, including former chief regulatory officer Daniel Friedberg. Prosecutors later accused Bankman-Fried of using executives as proxy donors to make significant contributions across the political spectrum, aiming to influence cryptocurrency policy in Washington D.C.
Executives Received Massive Loans
Bankman-Fried, who founded FTX, has had five of his charges related to campaign finance violations separated from his fraud trial. While he pleaded not guilty to these charges, prosecutors have clarified that the “illegal campaign finance scheme” remains a part of the overall case against him. A revised indictment is expected to clarify the links between campaign finance donations and the money laundering and fraud allegations.
In March, the Federal Bureau of Investigation (FBI) seized phones belonging to both Bond and Salame from their shared residence in Maryland. It was reported that Salame’s attorney had previously engaged in discussions with prosecutors on his behalf.
It has also come to light that Salame, along with other executives, received substantial loans totaling tens of millions of dollars, primarily facilitated through Alameda Research, FTX’s hedge fund affiliate, prior to its collapse. Authorities have identified assets acquired by former executives, including a private jet purchased by Salame during his FTX tenure. The fate of these assets could be determined in the context of a plea deal with the government or as part of the company’s bankruptcy proceedings.
Salame’s involvement extended beyond finance, as he ventured into purchasing restaurants in Lenox, Massachusetts, with an investment of over $6 million after joining Alameda Research in 2019. The ongoing bankruptcy estate and prosecutors have set their sights on assets acquired by FTX executives, allegedly funded with commingled customer funds. In February, FTX contacted political recipients of contributions from Bankman-Fried, Salame, and Nishad Singh, including super PACs, urging them to return the funds.
