Former FTX executive, Ryan Salame, is expected to plead guilty to criminal charges related to the fraud case against Sam Bankman-Fried, the founder of the collapsed cryptocurrency company. This will make Salame the fourth executive to plead guilty to criminal conduct since the company's collapse last fall.
Salame, who was the former co-CEO of Bahama-based affiliate FTX Digital Markets, is reportedly scheduled to enter his guilty plea in a federal court hearing on Thursday afternoon. The exact charges against him have not been reported, but it has been noted that Salame was under investigation for campaign finance law violations. Other executives have pleaded guilty to charges such as conspiracy to commit fraud, conspiracy to commit money laundering, conspiracy to violate federal campaign finance laws, fraud, and wire fraud.
Salame's expected guilty plea follows the Federal Bureau of Investigation's search of his home earlier this year. The three executives who have already pleaded guilty have agreed to cooperate with federal investigators on FTX's practices.
FTX, once the world's largest cryptocurrency exchange firm, experienced a liquidity crisis in November 2022, leading to its collapse. The company filed for bankruptcy on November 11. Bankman-Fried, the founder, was arrested a month later and is currently in jail after having his bail revoked for alleged witness tampering. Salame previously told Bahamian regulators that money from FTX Digital Markets was transferred to cover the financial losses of FTX sister firm Alameda Research.
These recent developments highlight the ongoing legal proceedings surrounding FTX and the actions of its executives. As the case continues, it remains to be seen how these guilty pleas will impact the overall investigation and potential repercussions for those involved.