FTX former CEO Sam Bankman-Fried pleads guilty to criminal charges, increasing pressure on SBF to plead guilty as well

Bloomberg reported that sources revealed former FTX executive Ryan Salame is set to plead guilty to criminal charges and is expected to appear in court in the United States on Thursday. He becomes the fourth high-ranking official from the defunct exchange FTX to plead guilty. This action confirms his illicit activities with former girlfriend and Republican congressional candidate Michelle Bond, and increases the pressure on FTX co-founder Sam Bankman-Fried SBF to plead guilty as well.

Salame Faces Charges of Violating Campaign Finance Laws

Sources indicate that Ryan Salame will be charged with violating multiple laws including campaign finance laws and may assist in the prosecution of FTX co-founder Sam Bankman-Fried (SBF) after reaching a cooperation agreement with prosecutors.

Salame Allegedly Used FTX User Funds to Support Ex-Girlfriend's Political Campaign

Ryan Salame's ex-girlfriend Michelle Bond was a 2022 Republican congressional candidate. The indictment alleges that, at the direction of SBF, Salame used funds from FTX customers to make donations to the Republican Party and its candidates. In April of this year, prosecutors seized evidence related to the two individuals' $4 million mansion.

Public disclosures show that Michelle Bond previously worked at the Digital Asset Market Association and served as an advisor to FTX, earning an annual income of $200,000. Although she ultimately lost the election, records indicate that Michelle Bond relied on Ryan Salame and FTX Group employees to raise over $54,000, totaling nearly $660,000 in campaign funds.

In the United States, individual contributions to political candidates are capped at $2,900. While there are no limits for the candidates themselves, Michelle Bond personally invested $145,309 in her campaign and must verify that these funds are indeed hers. Ryan Salame's confession reveals the illicit nature of these activities.

Salame's Private Jet and Restaurant Investments to be Recouped

During his time at FTX, Salame not only purchased a private jet but also acquired five restaurants for over $600,000. Authorities suspect that the purchasing funds may have been mixed with FTX user funds. Informants suggest that assets like the private jet may become part of a plea agreement with the government or be recouped for creditors in the company's bankruptcy proceedings.

Salame's Former Colleagues are Key Witnesses

Ryan Salame's former colleagues, including Gary Wang, Caroline Ellison, and Nishad Singh, have admitted involvement in a multi-billion-dollar fraud case that led to the collapse of the crypto empire. These former FTX executives will serve as key witnesses in the government's case against Sam Bankman-Fried.

SBF Faces Major Fraud Charges in U.S. History

Sam Bankman-Fried is accused of misusing customer funds in a long-standing fraud scheme at FTX, described by prosecutors as one of the largest financial frauds in U.S. history. If Salame pleads guilty, it will intensify the pressure on SBF leading up to his trial in October.

SBF Maintains Innocence, Prosecutors Focus on Campaign Finance and Money Laundering Charges

Currently, SBF maintains his innocence on all charges. However, prosecutors assert that the illegal campaign financing scheme will remain a part of the government's case against him. An indictment expected to be filed next year is anticipated to elucidate the connections between campaign donations, money laundering, and fraud allegations.