Former FTX Co-CEO Pleads Guilty to Fraud and Unlicensed Money Transmission Charges
Summary:
Former FTX executive, Ryan Salame, pleads guilty to defrauding the US Federal Elections Commission and running an unlicensed money transmitting business. Salame's guilty plea makes him the fourth major player associated with FTX facing criminal charges. He could face significant prison time and hefty penalties. The sentencing is scheduled for March 2024.
Ryan Salame, previously one of the co-CEOs of FTX Digital Markets, has entered a guilty plea in connection with defrauding the United States Federal Elections Commission and participating in a conspiracy to run an unlicensed money transmitting business. The U.S. Justice Department disclosed on September 7 that Salame pleaded guilty in the U.S. District Court for the Southern District of New York, becoming the fourth prominent figure connected to the now-defunct crypto exchange FTX to face criminal charges and admit guilt. Salame may face a prison sentence for his involvement in the campaign finance violation and operating an unlicensed money transmitting business. Although Salame admitted his guilt, Assistant U.S. Attorney Samuel Raymond stated that he plans to request probation for Salame following the forthcoming criminal trial of former FTX CEO Sam Bankman-Fried, which is set to commence on October 3. As part of his guilty plea, Salame is expected to pay $6 million in penalties to the U.S. government and $5 million to FTX creditors. Furthermore, he will surrender two properties located in Massachusetts and a Porsche registered under his name. Salame reportedly acknowledged, "I falsely characterized $10 million in political contributions as loans, with no intention of repaying them," during a September 7 communication cited in a thread from Inner City Press. "Sam Bankman-Fried supported this. I was aware of its prohibition [...] As the head of settlements at Alameda, I utilized various banks, including one in California. I was unaware that a license was necessary. But now I know." At the time of this report, Salame was released on a $1 million bond and is scheduled to be sentenced in March of 2024. We will continue to provide updates as more information becomes available.
Published At
9/7/2023 8:02:45 PM
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