Former FTX Executive Ryan Salame Revisits Court Over Withdrawn Guilty Plea

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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September 12, 2024

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Ryan Salame, former co-CEO of FTX Digital Markets, reappeared in U.S. District Court on Thursday, September 12, as Judge Lewis A. Kaplan addressed his previously withdrawn guilty plea.

The court appearance follows the collapse of Salame’s original plea agreement with U.S. authorities, which has reignited scrutiny over his alleged involvement in criminal activities.

Ryan Salame’s Guilty Plea Revisited

In August, Salame’s lawyers filed a motion to void his guilty plea, citing a breach of agreement by U.S. authorities.

The former executive had initially pleaded guilty to money-transmitting charges in exchange for halting an investigation into his partner, Michelle Bond.

Bond, a former SEC lawyer, was later indicted on campaign finance violations linked to her unsuccessful run for Congress in 2022.

The four-count indictment against Bond was unsealed just a day after Salame sought to vacate his guilty plea.

However, within days, Salame retracted his request to void the plea, leading Judge Kaplan to question the motivations behind Salame’s actions.

Prosecutors responded by issuing a 32-page memo challenging Salame’s claims and defending their actions.

New allegations have further complicated Salame’s case, linking him to a bribery scheme with Chinese officials.

Prosecutors allege that in 2021, Salame took part in a $150 million bribery plot aimed at unfreezing $1 billion worth of crypto assets held by exchanges Huobi and OKX.

The plan, linked to Alameda Research, sought to regain access to frozen assets by bribing Chinese officials. This has added significant pressure to Salame’s ongoing legal battles.

Ryan Salame’s Legal Woes Deepen Amid Stricter Penalties

Although Salame retracted his plea and faces health complications, Judge Kaplan has enforced strict bail conditions, including mandatory attendance at all court hearings.

In May, the judge imposed a stricter sentence than the 5-7 years initially recommended by prosecutors, signaling the severity of the charges.

Salame’s legal team recently requested a sentencing delay after he suffered a dog bite from a German Shepherd during a visit to a friend’s house.

The injury, which required urgent medical treatment and surgery, led to the postponement of his surrender date from August 29 to October 13 to allow time for recovery.

With Judge Kaplan seeking clarity on the withdrawn guilty plea and Salame facing bribery allegations linked to Alameda Research, his legal challenges appear far from over, leaving his defense team with major hurdles ahead.