Former FTX CEO Ryan Salame Is In Negotiations With US Prosecutors To Plead Guilty: Report

Key Points:

• Ryan Salame, the former co-CEO of FTX Digital Markets, is in the process of speaking with prosecutors to plead guilty in connection with the collapse of FTX.
• It remains to be seen if he cooperated with prosecutors to appear as a witness before the trial against founder Sam Bankman-Fried (SBF).
• Shortly after the collapse of FTX, Salame reported to the Bahamas authorities the alleged fraud by FTX and Bankman-Fried.

Bloomberg quoted people familiar with the matter as saying that Ryan Salame, former co-CEO of FTX Digital Markets, is in talks with federal prosecutors to admit criminal charges related to FTX’s bankruptcy.

According to people familiar with the matter, he could plead guilty to violating campaign donation laws as early as next month. It is unclear if he reached an agreement to cooperate with prosecutors and testify against the SBF in October.

Salame has not previously been charged with the FTX bankruptcy, and details of a potential plea agreement have yet to be finalized.

If due process, Salame would be the fourth former FTX executive to plead guilty. Previously, Gary Wang, Caroline Ellison, and Nishad Singh have all pleaded guilty and will be key witnesses in the US government’s prosecution of SBF.

According to Bahamian court filings filed on December 14, Ryan Salame, former co-CEO of FTX Digital Markets (FDM), told the Securities Commission of the Bahamas (SCB) on November 9 that FTX is sending client funds to its sister company, the trading company Alameda Research.

Salame said the money was to “cover Alameda’s financial losses” and that the transfer was “not authorized or agreed upon by its customers”.

According to previous reports, the FBI searched Ryan Salame’s whereabouts in April this year. In July, Ryan Salame was investigated by federal prosecutors in Manhattan for possible violations of campaign finance laws.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.