FTX’s Ryan Salame faces sanctions after perjury admission FTX’s Ryan Salame faces sanctions after perjury admission
Salame retracted earlier testimony, admitting to being promised leniency for his partner in exchange for guilty plea.
2 min read
Updated: Sep. 12, 2024 at 8:39 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Former FTX executive Ryan Salame faces potential sanctions after admitting to making false statements during his 2023 guilty plea for campaign finance and money-transmitting crimes.
US District Judge Lewis Kaplan, overseeing the case, expressed concerns about Salame’s earlier testimony, where he denied any promises made by prosecutors to secure his plea.
Concerns of perjury
At the Sept. 12 hearing in Manhattan, Salame acknowledged that he had lied to the court during his plea hearing last year. He had previously testified that federal prosecutors had made no promises to secure his guilty plea.
However, Salame has since claimed that he was told through his attorneys that the government would halt its investigation into his partner, Michelle Bond, if he agreed to plead guilty. This revelation contradicts his earlier testimony, raising concerns of perjury.
Kaplan expressed significant frustration over Salame’s admission and noted that it presents a “big problem.” He explained that the false testimony could undermine the validity of his conviction and sentence since it was based on incorrect information.
Kaplan made it clear that Salame had misled him by initially denying any promises made by prosecutors in exchange for his guilty plea, an action that could lead to further legal consequences — including potentially severe sanctions.
The judge, who previously sentenced Salame to 90 months in prison for his role in the collapse of FTX, said he would need time to determine the appropriate next steps. Additionally, in an unrelated development, Kaplan ordered Salame to report for his sentence on Oct. 11 instead of the previously scheduled Oct. 13 since the latter date is a Sunday.
Bond indictment
The complications surrounding Salame’s case intensified following the indictment of his partner, Michelle Bond, a former candidate for the US House of Representatives. Prosecutors allege that Salame conspired with Bond to make unlawful contributions to her 2022 congressional campaign.
According to court filings, Salame allegedly transferred substantial sums of money from FTX to Bond’s personal bank account, which were then used to fund her political campaign.
Bond was indicted on campaign finance violations in August, a development that occurred shortly after Salame’s legal team requested to vacate his guilty plea. His attorneys had argued that federal prosecutors had not upheld their agreement to end the investigation into Bond.
However, shortly after Bond’s indictment, Salame withdrew his motion to overturn the plea, stating that he no longer intended to pursue that course of action.
Judge Kaplan ordered Salame to appear at the Sept. 12 hearing to clarify the discrepancies in his statements. Despite the recent developments, Salame reiterated that he would not seek to undo his guilty plea.
Salame’s legal team has not commented on the latest developments in his case, while Judge Kaplan indicated he would take time to consider what actions, including possible sanctions, might be warranted.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Ryan Salame is the former co-CEO at FTX Digital Markets (FDM), the Bahamian subsidiary of FTX Trading Limited.
