Former Co-CEO of FTX Digital Markets, Ryan Salameh, was recently found guilty in U.S. District Court of conspiring to defraud the U.S. Federal Election Commission (FEC) and operate an unauthorized money transfer business. made an answer.
His plea follows a series of guilty pleas by other FTX and Alameda Research executives, making Salame the latest domino in a complex case with far-reaching consequences.
breaking news:
According to CNBC, former FTX executive Salameh pleaded guilty to $1.5 billion and pleaded guilty to two criminal charges.
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Former FTX executive Ryan Salameh is set to plead guilty today to criminal charges, including donating $24 million in stolen customer funds to the U.S. Congress.— Frank’s Place (@StockSenseFrank) September 7, 2023
Whistleblower becomes defendant
Ryan Salameh was one of the first insiders to alert authorities to FTX’s suspicious activity.
He reported that FTX and its sister business, Alameda Research, had commingled client funds, according to evidence presented in court. As a result, this action was a key factor leading to the eventual demise of FTX.
However, the whistleblower has been linked to illegal activities, including campaign finance violations and unauthorized operation of the company. The allegations stem from Salameh’s participation in his girlfriend Michelle Bond’s candidacy for parliament in 2022.
One of the fun was Ryan Salameh’s girlfriend Michelle Bond was running for Congress on Long Island last summer.
At the time, it was a fairly normal campaign, except that some of those involved were concerned about Ryan Salameh’s $$$ involvement.https://t.co/flbti50gAM pic.twitter.com/gPSS5OW8RX
— Teddy Schleifer (@teddyschleifer) September 7, 2023
Salameh admitted to making fraudulent campaign donations on behalf of companies as well as on an individual level. “I made a $10 million political donation, called it a loan, and had no intention of paying it back,” Salameh said. Admitted. Former FTX CEO Sam Bankman-Fried is said to have aided his illegal activities.
Salameh will pay the U.S. government about $6 million in fines as part of the plea bargain and pay back more than $5 million to FTX debtors. In addition, he will turn over two properties in Massachusetts and a Porsche registered in his name. Ryan Salameh remains released on $1 million bail awaiting sentencing, expected in March 2024.
Salame joins guilty plea list
Salameh’s guilty plea adds weight to an already complex case involving FTX and Alameda Research. Both companies have been hit hard by criminal charges and ongoing investigations. Former executives at these companies, including Caroline Ellison and Gary Wang, have already pleaded guilty to federal fraud charges.
The long-awaited trial of former FTX CEO Sam Bankman-Fried, who pleaded not guilty to 12 criminal charges, is set to begin in October 2023.
These developments signal federal prosecutors are on the verge of investigating widespread financial misconduct affecting the cryptocurrency industry and the political arena.
RE Salame 1.5 Billy
If (in my non-lawyer opinion) he pays $6 million before sentencing and hands over the property and the Porsche, he will be sentenced to $1.5 billion, but the judgment seems to be satisfactory.https://t.co/US8rJeegqy
—db (@tier10k) September 7, 2023
Ryan Salameh’s plea and additional indictments against other key executives make it clear that misconduct within the FTX organization is not limited to a few bad guys. Instead, it points to systemic issues that raise questions about corporate governance and ethical behavior in the rapidly growing cryptocurrency market.
The FTX lawsuit isn’t over yet, but Salameh’s plea adds more confusion and drama to the proceedings. Moreover, the impact on the cryptocurrency industry remains uncertain as the incident continues to resonate. However, it has set a precedent that will guide future legal action and regulatory oversight in the crypto industry.
As cryptocurrencies mature and gain mainstream acceptance, the need for strict compliance and ethical behavior becomes urgent.
Only time will tell if Salameh’s plea serves as a warning to the industry or just a footnote in a complicated history.
