Ryan Salame, the ex-co-CEO of FTX’s Bahamian subsidiary, is reportedly preparing to file a guilty plea in federal court in Manhattan. This Thursday’s presentation is a part of the continuing inquiry into the collapsed digital currency exchange. This development comes just over a month before FTX co-founder Sam Bankman-Fried’s trial.
Ryan Salame Under Scrutiny
Salame’s guilty plea comes at a critical juncture, less than a month before Sam Bankman-Fried’s trial. This shifts the focus back to the many criminal and regulatory probes in which FTX has been involved. In addition, inquiries had focused on Salame because of the $24 million he had donated to political campaigns.
Additionally, the federal government has previously investigated Salame, primarily for possible breaches of campaign financing legislation. These were associated with his role in Michelle Bond’s 2022 congressional race. As a result, federal officials have been trying to ascertain if Salame and Bond evaded contribution restrictions set by the government.
Guilty Pleas at FTX
In addition, Salame’s confession will be the fourth from FTX-affiliated officials. Caroline Ellison and Gary Wang, who were both charged with federal fraud in December 2022, have already pleaded guilty. Nishad Singh, formerly the director of engineering at FTX, also pleaded guilty earlier this year.
U.S. District Judge Lewis Kaplan, also presiding over the lawsuit against Bankman-Fried, is set to hear testimony from Ryan Salame. However, Bankman-Fried, who is accused of fraud and conspiracy in connection with the collapse of the exchange, has entered a not-guilty plea. Before the collapse of FTX, he had become a millionaire in part due to the rapid rise in the value of cryptocurrencies like Bitcoin.
Ryan Salame’s guilty plea may affect the upcoming trial of FTX’s co-founder and the broader regulatory climate for crypto exchanges. Salame’s next court appearance will surely draw enormous attention, both inside and outside of the crypto community, given the scale of FTX’s collapse
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