Former FTX exec will give up real estate, car, and $11M following guilty plea: Report

Former FTX exec will give up real estate, car, and $11M following guilty plea: Report

Ryan Salame, the former co-CEO of FTX Digital Markets, has pleaded guilty to charges related to defrauding the United States Federal Elections Commission and conspiracy to operate an unlicensed money transmitting business

According to a Sept. 7 announcement from the U.S. Justice Department, Salame pleaded guilty before a judge in U.S. District Court for the Southern District of New York, making him the fourth major player connected to defunct crypto exchange FTX facing criminal charges to do so. The former co-CEO could face years in prison for the campaign finance charge as well as additional time related to operating an unlicensed money transmitting business.

The former FTX executive pleaded guilty to the criminal charges, but Assistant U.S. Attorney Samuel Raymond reportedly said he would make a submission to probation following the criminal trial of former FTX CEO Sam Bankman-Fried scheduled to begin on Oct. 3. Salame will reportedly pay $6 million in penalties to the U.S. government, $5 million to FTX debtors, and surrender two properties in Massachusetts as well as a Porsche in his name.

“I made $10 million in political contributions and called them loans, which I never intended to repay,” said Salame, according to Sept. 7 X thread from Inner City Press. “This was supported by Sam Bankman-Fried. I knew it was prohibited […] As Alameda’s head of settlements I used banks, one used in California. I was unaware licensure was required. But now I know.”

At the time of publication, Salame remained free on a $1-million bond, with sentencing scheduled for March 2024.

This is a developing story, and further information will be added as it becomes available.