TLDR:
Ryan Salame, former FTX executive, pleaded guilty to campaign finance violations and operating an unlicensed money transmitting business
Prosecutors allege Salame was involved in a bribery scheme to unfreeze Alameda Research funds in China
Salame attempted to vacate his guilty plea, claiming prosecutors threatened his partner Michelle Bond
U.S. prosecutors argue they did not breach Salame’s plea agreement or promise to halt investigation into Bond
The filing reveals allegations of Salame using identities of Thai prostitutes to open crypto accounts
Ryan Salame, the former co-CEO of FTX Digital Markets, is at the center of a legal storm involving his guilty plea, allegations of bribery, and claims of prosecutorial misconduct.
Salame, who pleaded guilty in September 2023 to conspiracy charges related to unlawful political contributions and operating an unlicensed money-transmitting business, was sentenced to 90 months in prison.
In a recent development, U.S. prosecutors filed a memorandum opposing Salame’s motion to vacate his guilty plea.
The prosecutors described Salame’s petition as “shameless and self-serving” and “procedurally defective and factually and legally meritless.” This comes after Salame had already withdrawn his petition to vacate the plea on August 29, 2024.
The prosecutors’ filing revealed new allegations against Salame, linking him to a bribery scheme involving Alameda Research in China.
According to notes from an April 2023 conference call with Assistant U.S. Attorneys, Salame was allegedly involved in efforts to unfreeze accounts tied to FTX and Alameda Research.
Prosecutors claim that Salame opened crypto accounts using the personally identifiable information of individuals he identified as Thai prostitutes to enable self-trading.
These allegations are connected to a broader scandal involving former FTX CEO Sam Bankman-Fried and former Alameda CEO Caroline Ellison. Ellison had previously testified that Alameda paid a $150 million bribe to Chinese government officials to unlock $1 billion in funds frozen in Huobi and OKX accounts in 2021.
Salame’s legal troubles extend beyond these allegations.
He initially filed a petition to vacate his guilty plea after authorities suggested they would investigate his partner, Michelle Bond. Bond, who ran as a Republican for a U.S. House of Representatives seat in 2022, now faces four charges related to campaign finance law violations.
In his petition, Salame accused prosecutors of using plea negotiations to “threaten” Bond, claiming he only pleaded guilty on the promise that the government would drop its investigation of her.
However, prosecutors argue that they repeatedly clarified with Salame’s lawyers that his guilty plea would not halt any ongoing investigation into Bond.
The prosecutors’ filing states, “Salame’s claim that the Government breached the plea agreement is wrong on the facts and the law.” They maintain that the plea agreement contained no promises about the investigation of Bond and that they had made it clear that Salame and Bond’s cases were separate.
The legal battle has also brought to light additional allegations against Salame. Prosecutors claim he “supervised efforts to pay bribes to immigration authorities,” though specific details about these allegations were not provided in the filing.
Salame is currently scheduled to report to prison on October 13, 2024. His sentencing date was pushed back from August 29 due to a need for urgent surgery following a dog attack.
The court is set to address the matter at a hearing on September 12, 2024, where both parties will have the opportunity to present their arguments regarding Salame’s guilty plea and the surrounding circumstances.
The post Plea Deals & Prostitutes: FTX Ryan Salame’s Guilty Plea Challenged as New Allegations Emerge appeared first on Blockonomi.
