Former FTX crypto executive pleads guilty to making millions in illegal campaign contributions
NEW YORK — A former top executive at the failed FTX cryptocurrency exchange pleaded guilty Thursday to making tens of millions of dollars in illegal campaign contributions to U.S. politicians and engaging in a criminal conspiracy to operate an unlicensed money transfer business.
Ryan Salame, previously the co-chief executive of FTX Digital Markets, has become the fourth senior official associated with the company or its affiliates to admit guilt to criminal charges.
As part of an agreement with the prosecution, he consented to surrender assets worth a maximum of $1.55 billion. Additionally, there is a possibility that he may be summoned as a witness to provide testimony during the trial of FTX founder Sam Bankman-Fried. Bankman-Fried was apprehended in the Bahamas last year and brought back to the United States to face allegations of numerous illegal activities associated with his management of the widely-used digital currency trading platform.
Salame, 30, entered his plea before a judge in Manhattan, admitting to the court that he illegally used millions of dollars from a hedge fund controlled by Bankman-Fried to make political contributions in 2020 and 2021 to both Democrats and Republicans.
According to him, the aim of those contributions was to financially support political endeavors endorsed by Bankman-Fried. In a recently revealed criminal complaint, prosecutors stated that they had acquired private messages where Salame mentioned Bankman-Fried’s desire to back politicians from both parties who were in favor of cryptocurrency, while also working towards removing lawmakers who were against it.
Jason Linder, the attorney representing Salame, did not promptly respond to an email requesting a comment. The sentencing for Salame is tentatively planned for March, and he has been granted release from federal custody until that time.
Bankman-Fried is awaiting trial on charges that he defrauded customers by diverting their money to cover his expenses, make illegal campaign contributions and make trades at a separate crypto hedge fund he founded, Alameda Research.
Caroline Ellison, Nishad Singh, and Gary Wang, who are three other executives closely associated with Bankman-Fried, have already admitted their guilt.
The trial of Bankman-Fried is set to take place in October.
Bankman-Fried has entered a plea of not guilty. He was released on bail prior to the trial, but he was recently incarcerated following a judge’s decision that he had attempted to sway potential witnesses in the matter. This included providing Ellison’s confidential writings to media outlets.
Before FTX collapsed and declared bankruptcy in November, Bankman-Fried had been one of the best-known U.S. crypto entrepreneurs. His company hired celebrities, including “Curb Your Enthusiasm” star Larry David, to appear in TV ads.
Bankman-Fried and individuals affiliated with his companies, such as Salame, were also generous contributors to political campaigns. Salame provided substantial financial support to Republican candidates running for office.
