2023-09-08 16:04:17
Former FTX Digital Markets co-CEO Ryan Salame has joined pleaded guilty of all charges related to fraud to the Federal Election Commission (FEC) and conspiracy to operate an unlicensed money transmission business. According to the announcement, Salame pleaded guilty before a judge in the United States District Court for the Southern District of New York. This move makes him the fourth major player related to the FTX exchange to take such action. It is believed the former FTX executive might face years in prison on the campaign finance charge.
Salame might have to serve more time in prison for operating a money transmission business without a license. The campaign finance charges were related to contributions to the 2022 congressional campaign from the former executive’s girlfriend, Michelle Bond.. According to the FEC filing, the former FTX executive made two payments of $2,900 to support Bond’s campaign in Massachusetts.
Likewise, these donations included two additional donations of the same amount for the general elections. Reports have also suggested that these contributions were made in the name of a corporation, which is an active violation of the law. Salame declared that he made political donations of almost $10 million and classified them as loans that he never wanted to repay.. However, he singled out Sam Bankman-Fried and accused her of supporting him. Despite knowing that he was prohibited, he did so using benches.
FTX Is Still in the Shadows
The former FTX executive might have pleaded guilty to all charges, but Assistant District Attorney Samuel Raymond said he would move forward with a request for probation. However, this step would be taken following Bankman-Fried’s criminal trial, which is scheduled for October 3. At the moment, Salame would pay nearly $6 million in fines to the U.S. government, along with another $5 million to FTX creditors.. He would also give up two properties in Massachusetts and the Porsche he owns.
However, Salame remains free on $1 million bail and sentencing will likely take place in March 2024., just days following the start of Bankman-Fried’s second criminal trial. Former Alameda Research CEO Caroline Ellison, FTC co-founder Gary Wang, and the exchange’s former director of engineering Nishad Singh have pleaded guilty to all charges.
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