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Hassan Shittu
Journalist
Hassan Shittu
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U.S. prosecutors have denied any breach of their plea agreement with Ryan Salame, a former executive at FTX, amid a growing legal battle that touches on campaign finance violations, alleged bribery, and accusations of prosecutorial misconduct.
Salame, who pled guilty in September 2023 to conspiring to make unlawful political contributions and operate an unlicensed money transmitting business, is facing further scrutiny over new allegations linked to his actions at FTX.
Plea Agreement Controversy: Salame Protecting His Partner From Investigation
Salame’s legal challenges escalated when he accused the government of misconduct, claiming prosecutors had reneged on a promise to drop an investigation into his partner, Michelle Bond.
Bond, who ran for a U.S. House of Representatives seat in 2022, was charged last month with campaign finance violations, allegedly using illicit funds to support her candidacy. Salame argued that his guilty plea was conditional on assurances that Bond would not face charges.
In response, U.S. prosecutors have firmly denied making such promises, stating that they had clearly communicated to Salame’s legal team that his plea agreement would not affect ongoing investigations into Bond.
They described Salame’s claims as “factually and legally meritless,” emphasizing that the plea agreement was consistent with their discussions and contained no stipulations regarding Bond’s case.
Prosecutors noted that Salame was fully aware of the investigation into Bond before his sentencing but did not raise any objections then.
They argued that his current claims should have been presented before the judgment was entered or at least during his sentencing, pointing out that Salame did not file an appeal following his conviction.
Other Allegations of Misconduct and Bribery
According to multiple sources, the prosecution’s recent court filing also sheds light on Salame’s alleged misconduct while at FTX, revealing that he reportedly used personal identity information from individuals he described as Thai prostitutes to open accounts on the exchange.
This latest action was purportedly related to efforts to unfreeze accounts associated with FTX and Alameda Research. These allegations relate to a larger scandal involving FTX’s former CEO, Sam Bankman-Fried, and former Alameda CEO, Caroline Ellison.
According to Ellison’s testimony at Bankman-Fried’s trial, in 2021, Alameda paid a $150 million bribe to Chinese officials to unlock over $1 billion in funds frozen in accounts on exchanges like Huobi and OKX.
Prosecutors allege that Salame participated in this scheme by overseeing the creation of accounts intended for self-trading, using compromised identities to facilitate these actions.
Additionally, prosecutors claim that Salame “supervised efforts to pay bribes to immigration authorities,” although the filing’s specifics regarding these bribes remain unclear.
Therefore, Salame’s attempt to vacate his guilty plea has been met with strong opposition from the prosecution, who have labeled his efforts as “shameless and self-serving.”
They argue that his claims lack sincerity and merit, criticizing his move as an attempt to evade the consequences of his involvement in what they described as an unprecedented illegal campaign finance scheme.
Salame’s legal strategy has thus far included withdrawing his petition to vacate the plea and seeking to push his sentencing date, originally scheduled for August 29, to October 13 due to urgent surgery needed after a dog attack — a request that was granted.
However, the core issue regarding the alleged breach of the plea agreement will be addressed in an upcoming hearing on September 12, 2024, at which both sides will have the opportunity to present their arguments.
Bond, meanwhile, remains under investigation and has not yet responded publicly to the charges against her. She is currently free on bail, but the outcomes of both of their respective cases are still developing.
