Ryan Salame, former co-head of FTX Digital Markets, pleaded guilty in Manhattan court to campaign finance and embezzlement charges. The defendant was ordered to quickly return $6 million or face a staggering $1.5 billion in fines.
Ryan Salame pleads guilty in FTX case
As he announced last month, Ryan Salame, the former co-CEO of FTX Digital Markets, the Bahamian arm of the exchange (where its headquarters were located), has pleaded guilty to the various charges against him.
He appeared in Manhattan court yesterday, Thursday 7 September, to answer charges of campaign finance and embezzlement.
According to various documents found by the new FTX management, Ryan Salame had made more than $24 million in political donations, mostly to Republican candidates, in 2021 and 2022.
According to Inner City Press, which broadcast the court hearing, Salame fully admitted the illegality of the facts:
Judge Kaplan: What did you do?
Salame: I made $10 million in political contributions and called them loans, which I never intended to repay. This was supported by Sam Bankman-Fried. I knew it was prohibited.
Judge Kaplan: Government?
AUSA: We can proffer on venue– Inner City Press (@innercitypress) September 7, 2023
“Judge Kaplan: What have you done? “
” Ryan Salame: I made $10 million in political contributions and called them loans, which I never intended to pay back. That was supported by Sam Bankman-Fried. I knew it was prohibited. “
A prosecutor said Ryan Salame’s various actions operating illegally allowed FTX to “grow larger and faster,” adding that the government was fully committed to “pursuing swift justice against FTX individuals. “
The return of 1.5 billion dollars
Ryan Salame is the 4th former FTX executive to plead guilty, following Caroline Ellison, Nishad Singh and Gary Wang. Unlike the latter 3, Ryan Salame has not been ordered to plead against Sam Bankman-Fried, but his confession can only help to bring the truth to light.
Under the terms of the agreement between Ryan Salame and the court, Salame will initially have to pay back $6 million, part of which will be covered by the donation of a 2021 Porsche and several properties, including 2 houses. If Salame fails to repay the $6 million within the allotted time, he will be forced to pay up to $1.5 billion.
“Upon receipt of payment […] the United States will accept the payment and substitute assets in full satisfaction of the judgment. “
However, the government could be forced to seize $1.5 billion from Salame if it turns out he lied in any of his affidavits.
As the charges against Ryan Salame were relatively light compared with those against Sam Bankman-Fried, for example, the former co-CEO of FTX Digital Markets was released on $1 million bail.
Sam Bankman-Fried’s trial is scheduled for 3 October.
