FTX exec pleads guilty ahead of Sam Bankman-Fried's trial
New York, New York - Another FTX chief turned on Sam Bankman-Fried on Thursday, bringing to four the number of top executives to plead guilty ahead of the fallen crypto entrepreneur's multi-billion dollar fraud trial.
Ryan Salame, who headed FTX Digital Markets, the digital currency exchange platform's Bahamas subsidiary, admitted to engaging in sweeping campaign finance corruption in Manhattan federal court.
Salami pleaded guilty to conspiracy to make unlawful political contributions and defraud the FEC and conspiracy to operate an unlicensed money transmitting business, which carry up to 10 years. He also agreed to forfeit $1.5 billion.
The 31-year-old Bankman-Fried – waiting for his October 3 trial in jail after a judge revoked his $250-million bond amid witness tampering allegations – has pleaded not guilty in the case alleging he siphoned billions from his customers to resolve his hedge fund debts, buy off lawmakers in Washington, and live like a king in the Caribbean.
Prosecutors say he committed much of the stolen funds to influence cryptocurrency regulatory policies in Washington, funneling at least $100 million in straw donations to members of Congress in both parties and other high-level officials.
The feds say Salame (30) of Port Jefferson aided Bankman-Fried significantly in his efforts, reportedly shelling out a staggering $24 million to right-wing candidates ahead of the 2022 midterms, a chunk of it to New York Republicans.
More FTX executives plead guilty
FTX's head of engineering, Nishad Singh (27), was Bankman-Fried's other straw donor. He pleaded guilty to making illegal straw campaign contributions and money laundering charges in February.
Aware FTX's accounts were short billions of dollars through misappropriations, Bankman-Fried lied to investors and lenders and kept taking from the pot to fund his lucrative lobbying efforts and investments and acquisitions, according to Manhattan US Attorney Damian Williams, who has described his fraud as having vast scope and consequence.
FTX collapsed in late 2022, short some $8 billion. Bankman-Fried also faces civil charges by the Securities and Exchange Commission.
Salame's plea Thursday follows Singh's conviction and those of Caroline Ellison (28), who dated Bankman-Fried and headed his crypto hedge fund Alameda Research, and FTX co-founder Gary Wang (31). All are believed to be cooperating to avoid steep prison terms.
Salame did not respond to requests seeking comment ahead of the hearing.
A spokesperson for Bankman-Fried declined comment.
Cover photo: Collage: Michael M. Santiago / GETTY IMAGES NORTH AMERICA / Getty Images via AFP & REUTERS