A former top executive of a subsidiary of FTX is reportedly in talks with federal prosecutors to plead guilty to charges related to the collapsed cryptocurrency exchange. He has become the latest former executive to exit from FTX, Sam Bankman-Fried's firm who pleaded not guilty in January.
According to Bloomberg, Ryan Salame, the former Co-Chief Executive at FTX Digital Markets, could take a guilty plea as soon as next month. However, according to the sources who shared information with the publication on the condition of anonymity, it remains unclear whether he will testify against Bankman-Fried.
Ditching Bankman-Fried?
The other former FTX’s top executives, Caroline Ellison, Gary Wang, and Nishad Singh, have since pleaded guilty to playing a role in the exchange's multi-billion dollar fraud. However, Salame has not been charged in connection to the collapsed exchange, and the details of his plea have not been finalized.
Salame could potentially face charges related to the violation of the regulations for political donations. According to Bloomberg, the former executive, who headed FTX’s Bahamas subsidiary, was a megadonor to political parties in the US. He reportedly funded the campaigns of his girlfriend, Michelle Bond, who unsuccessfully vied for the Republican nomination for a seat in the New York Congress.
FTX's Political Donations
Additionally, Salame is believed to have received huge loans from Alameda Research, the hedge fund of FTX. The Prosecutors in the case have accused Bankman-Fried of allegedly directing his former executives to make political donations aimed at influencing policies for the cryptocurrency space.
Besides that, authorities have reportedly traced a private jet purchased by Salame while working for FTX. According to the sources who shared information with Bloomberg, the plane could be surrendered as part of the plea deal or sold to recover customers’ funds. Additionally, Salame reportedly purchased five restaurants in Massachusetts worth USD $6 million after joining the company.
Meanwhile, Finance Magnates reported a week ago that FTX had filed a motion to exclude its Dubai-based subsidiary from the ongoing bankruptcy proceedings in the US. This month, the exchange filed a series of court applications proposing a plan to relaunch its offshore operations.
This article was written by Jared Kirui at www.financemagnates.com.
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