FTX Scandal: Ex-Executive Fights Guilty Plea, Alleges Prosecutorial Misconduct
Former FTX Executive Seeks to Void Guilty Plea, Alleges Government Breach
Ryan Salame, the former co-chief executive officer of FTX Digital Markets Ltd., has filed a motion to void his guilty plea and the deal he reached with the government. Salame, who was a top lieutenant under FTX founder Sam Bankman-Fried, made this request in federal court in New York on Tuesday.
The motion, filed by Salame’s lawyers, alleges that the government breached a crucial aspect of the plea agreement by continuing to investigate his partner, Michelle Bond. According to the filing, government lawyers used plea negotiations to threaten Salame’s domestic partner, who is also the mother of his child.
Salame claims he agreed to the plea deal under the assumption that the investigation into Bond would be discontinued. However, reports suggest that the government has reopened its probe into Bond, prompting Salame’s legal team to argue that the plea agreement was induced by promises to protect her.
In a public statement, Salame expressed his concerns about potential repercussions but hopes his actions will encourage more honesty and truth-telling in the case.
The former FTX executive was sentenced in May to 90 months in prison, followed by three years of supervised release. He was also ordered to pay more than $6 million in forfeiture and over $5 million in restitution. While Salame pled guilty to charges, he did not serve as a cooperating witness for the government. However, he did testify in the criminal trial of Sam Bankman-Fried.
Salame is currently scheduled to surrender in October. As this is a developing story, further updates are expected.
The case continues to draw attention to the fallout from the collapse of FTX and the ongoing legal proceedings surrounding its former executives.
