Former FTX Executive Pleads Guilty; Risks 10-Year Prison Term

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  • Ryan Salame, former FTX executive, has pleaded guilty to criminal charges in the FTX case.
  • As part of the plea, Salame will be surrendering over $1.5 billion in New York federal court.
  • Reportedly, Salame could face up to 10 years in prison for his crimes.

Former FTX executive Ryan Salame has pleaded guilty to criminal charges in the FTX case, admitting in court that he had violated laws and operated an illegal money-transmitting business. Salame will also be surrendering over $1.5 billion, as part of the plea.

In addition to this sum, Salame will also be paying $5.6 million to FTX debtors. The former FTX executive has also agreed to pay $6 million to the government, among other properties before his scheduled sentencing. The date for his sentencing is March 6 of next year.

In a statement to the public, U.S. Attorney Damian Williams, said, “Ryan Salame agreed to advance the interests of FTX, Alameda Research, and his co-conspirators through an unlawful political influence campaign and through an unlicensed money transmitting business, which helped FTX grow faster and larger by operating outside of the law.”

Salame has also pleaded guilty to one count of conspiracy to make unlawful political contributions and defraud the Federal Election Commission. He revealed that he helped donate millions of dollars to political leaders both in the Democratic and Republican parties. Salame did add that these contributions were supported by Bankman-Fried. People close to the case say that Salame could face up to ten years in prison for his involvement in the FTX financial debacle.

This admission to guilt comes just a month before the infamous Sam Bankman Fried, former FTX founder, is to go on trial. Moreover, this plea is contradictory to what was earlier revealed by Salame’s advocates. Salame’s attorney had said that they would invoke this Fifth Amendment right and would not speak up in the FTX case.

According to reports, more members of the FTX team have pleaded guilty and will be testifying against Bankman-Fried. Former executives at Alameda Research and FTX Caroline Ellison, Gary Wang, and Nishad Singh, are the members expected to corporate with authorities.