Former co-CEO of FTX Digital Markets, Ryan Salame, has found himself in hot water as US prosecutors have linked him to a bribery scheme involving Chinese officials. Court documents filed on September 5 revealed that Salame was allegedly part of a plan to unfreeze over $1 billion in FTX and Alameda Research funds that had been locked in Chinese exchanges since 2021.
According to Assistant US Attorneys, former FTX CEO Sam Bankman-Fried orchestrated a $150 million bribe to Chinese officials to recover the funds, with Salame’s role allegedly involving opening accounts under the identities of Thai sex workers to enable self-trading.
Caroline Ellison, the former CEO of Alameda Research, testified at the trial of Bankman-Fried and confirmed that the bribe was indeed paid. Assistant US Attorney Danielle Sassoon also stated that there is evidence linking Salame to efforts to unfreeze the funds.
In a surprising turn of events, Salame attempted to withdraw his guilty plea related to illegal campaign finance charges, but later abandoned the motion. The prosecution criticized his actions as “shameless” and “self-serving,” highlighting his involvement in an illegal campaign finance scheme and money transmitting business.
Salame’s guilty plea stemmed from accusations of funneling funds from FTX to support the political campaign of his partner, Michelle Bond. He was sentenced to 90 months in prison, with his term set to begin in October. Despite his attempt to retract the plea, a hearing is scheduled for September 12 under Judge Lewis Kaplan.
This case sheds light on the ongoing legal repercussions following the collapse of FTX, with several former executives facing legal action. Bankman-Fried, for instance, received a 25-year prison sentence. The saga continues as the legal battle unfolds, revealing the intricate web of deceit and corruption within the digital markets industry.
