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Former FTX Executive Ryan Salame Returns to Court After Plea Withdrawal

AuthorRaymond Munene
Crypto News Author
Fact Checked by Joshua Downes
Last updated: September 12, 2024
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Former FTX Executive Ryan Salame Returns to Court After Plea Withdrawal

Highlights:

  • Ryan Salame returns to court as Judge Kaplan probes the plea deal that led to his 7.5-year sentence.
  • Salame’s legal team disputes the validity of his guilty plea, citing pressure tactics related to Michelle Bond.
  • Prosecutors maintain no deal was made to protect Bond, who faces charges tied to her 2022 congressional run.

Ryan Salame, the former co-CEO of FTX Digital Markets, returned to a Manhattan courtroom on Thursday. This follows his withdrawal of a motion to vacate his guilty plea related to campaign finance and money-transmitting crimes. Salame had previously agreed to a plea deal that resulted in a 7.5-year prison sentence. Disputes have emerged regarding the U.S. government’s investigation into his partner, Michelle Bond.

Salame’s legal team argues that prosecutors pressured him into pleading guilty by promising to stop investigating Bond, a former SEC attorney and unsuccessful congressional candidate. Despite this, Bond was indicted on campaign finance charges shortly after Salame’s plea deal was finalized. The indictment, which includes four counts related to her 2022 congressional run, was unsealed just one day after Salame sought to void his plea.

Salame’s attorneys claim the U.S. Attorney’s Office in Manhattan violated their agreement by pursuing charges against Bond. They argue that this breach of trust should nullify Salame’s guilty plea. However, Salame quickly reversed his decision to withdraw the plea, submitting a motion to the court to let the guilty verdict stand. Prosecutors responded with a 32-page memo, denying any wrongdoing and insisting that the plea deal was lawful.

Judge Kaplan Criticizes Plea Deal Dispute

Judge Lewis Kaplan, who is presiding over the case, has expressed skepticism regarding Salame’s claims. During Thursday’s hearing, Kaplan described Salame’s arguments as “ambiguous” and “inconsistent.” The judge did not rule out the possibility of imposing sanctions against Salame for his actions. Salame’s attendance at the hearing was a condition of his bail, highlighting the seriousness of the situation.

Salame’s legal battles are set against the backdrop of the broader fallout from the collapse of FTX, the cryptocurrency exchange founded by Sam Bankman-Fried. The exchange’s bankruptcy in November 2022 led to significant financial losses for investors and triggered multiple criminal and civil proceedings. Once a prominent figure within the FTX empire, Salame now faces severe legal consequences.

The former executive is due to report to prison in late October following a delay related to a leg injury. Meanwhile, his partner, Michelle Bond, continues to face legal challenges stemming from her alleged campaign finance violations. Bond’s indictment has added another layer of complexity to Salame’s case, raising questions about the conduct of prosecutors and the integrity of the plea deal process.

FTX Fallout Continues

In a related case, Caroline Ellison, the former head of Alameda Research and a key figure in the FTX scandal, is seeking leniency in her sentencing. Ellison, who cooperated with authorities after FTX’s collapse, has requested that the court impose no prison time. Her attorneys have highlighted her cooperation with the investigation, which they argue should result in a lighter sentence.

Ellison’s legal team hopes the court will recognize her contributions to the case. They seek a sentence of time served and supervised release. The Probation Department has recommended leniency, citing her clean record and lack of risk to public safety.

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