Former Co-CEO of FTX Digital Markets, Ryan Salameh, will appear in federal court in New York on September 7, 2023.
Stephanie Keith | Bloomberg | Getty Images
Former FTX Executive Ryan Salameh He pleaded guilty to campaign finance and wire transfer crimes in New York federal court on Thursday and agreed to forfeit more than $1.5 billion.
In his speech, Salameh directed tens of millions of dollars in political donations to both Democrats and Republicans in his name from fall 2021 to November 2022, but the money actually went to the cryptocurrency hedge fund sector. Alameda Research, Inc. Exchange owner FTX.
These donations were made at the behest of Sam Bankman-Fried, who was FTX’s CEO at the time, Salameh said.
Bankman-Fried is scheduled to stand trial on Oct. 3 on wire fraud and securities fraud charges related to allegedly looting billions of dollars in customer funds from FTX.
“From at least around 2020 until around November 2022, defendant Ryan Salameh was involved in multiple conspiracies to further the interests of Samuel Bankman Freed and a cryptocurrency company founded by Bankman Freed. Illegal. – including FTX.com (“FTX”) and Alameda Research (“Alameda”) – through the operation of a remittance business and violations of federal election laws,” according to the indictment filed against Salameh. It is
According to the document, Salameh said in a personal message to his confidants, “The purpose of these bipartisan donations is to ‘eliminate anti-crypto supporters for pro-cryptocurrency advocates and pro-cryptocurrency advocates. Eliminate the anti-cryptocurrency repub for the repub” and the donation is likely to be routed via Salameh “to eliminate the Republican side.” ”
Salameh, who was released on Thursday after posting $1 million bail, could face up to 10 years in prison for campaign finance violations and operating an unlicensed money transfer business.
His sentencing was scheduled for March 6 by Judge Louis Kaplan in the United States District Court in Manhattan.
In addition to forfeiture of money owed to the US government, the 30-year-old Salameh will pay FTX debtors $5 million and the government $6 million in fines. Salameh will also hand over two homes he owns in Lenox, Massachusetts, and a 2021 Porsche.
Salameh’s attorney, Jason Linder of Mayer Brown, said in a statement: “Ryan is looking forward to forgetting this chapter and moving on with his life.”
Sources told CNBC that Salameh has not cooperated with federal prosecutors preparing a fraud trial against 31-year-old Bankman-Fried.
But three other former executives who previously pleaded guilty in the same court will testify against Bankman-Fried.
They are Caroline Ellison, who was the CEO of Alameda. Former FTX Technology Chief Gary Wang. And Mr. Nishad Singh who was in charge of engineering at FTX.
U.S. Attorney Damien Williams, who is prosecuting the FTX case, said in a statement: “Ryan Salameh has committed a criminal offense against FTX, Alameda Research, and their co-conspirators through illegal political influence campaigns and unauthorized money transfer operations. We agreed to promote our interests,” he said. , has helped FTX grow faster and bigger by operating in defiance of the law. ”
