Ryan Salame, the former co-CEO of FTX Digital Markets, has pleaded guilty to charges associated with defrauding the US Federal Election Commission (FEC) and conspiring to operate an unlicensed money transfer business. This development marks the fourth significant figure linked to the now -defunct cryptocurrency exchange FTX to face criminal charges, according to the US Department of Justice's announcement on September 7.
Salame's guilty plea was entered in the US District Court for the Southern District of New York. He now faces potential imprisonment on campaign finance charges, along with an additional sentence for operating an unlicensed money transfer business.
The campaign finance charges against Salame are related to contributions made to his girlfriend Michelle Bond's 2022 congressional campaign. FEC records indicate that Salame, the former FTX executive, made two donations of $2,900 each to support Bond's primary campaign in Massachusetts, as well as two contributions of $2,900 each to the general election. There are also reports of campaign donations made on behalf of a company, which would constitute a violation of US law.
It's worth noting that there is a reference to Sam Bankman-Fried in Salame's case. Bankman-Fried, the head of settlement at Alameda, has stated that he didn't know he needed a permit for such campaign contributions. However, he plans to apply for probation following his own criminal trial.
As part of his plea agreement, Salame is set to pay approximately $6 million in fines to the US government, over $5 million to FTX creditors, and will relinquish two properties in Massachusetts and a Porsche registered in his name. As of now, Salame remains free on $1 million bail, with his sentencing scheduled for March 6, 2024, shortly before Sam Bankman-Fried's second criminal trial is set to commence. Former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering director Nishad Singh have also pleaded guilty to federal fraud charges, while Sam Bankman-Fried has pleaded not guilty.
