Bloomberg reports possible guilty plea by former FTX top executive

Former FTX Digital Markets co-head Ryan Salame is in talks with U.S. prosecutors to plead guilty to criminal charges related to the beleaguered collapse of the crypto exchange. Bloomberg reports, citing sources.

According to the agency’s sources, the agreement could be reached as early as September. However, it is not yet clear whether Salame will plead guilty and testify against co-founder Sam Bankman-Fried, they added.

Salame’s ex-colleagues — Gary Wang, Caroline Ellison and Nishad Singh — have already pleaded guilty to involvement in the alleged multi-billion-dollar fraud at the collapsed crypto empire. They will become key witnesses in the case against Bankman-Fried.

Bloomberg reports that the former FTX Digital Markets co-head had not previously faced charges related to the collapse of the crypto exchange. Authorities charged Salame with violations of campaign finance laws.

In April, the FBI conducted a search of his residence in Potomac, Maryland. Salame came under close scrutiny from investigators due to a $24 million donation to Republicans during his tenure at FTX.

According to court filings, the manager who was in Bankman-Fried’s inner circle received in the form of $87 million in payments and loans from Alameda Research, an affiliate of the exchange.

Two days before FTX filed for bankruptcy, Salame, who headed the Bahamas operation, warned local authorities about potential fraud.