Former FTX Bahamas unit chief pleads guilty

On Thursday, September 7, the former CEO of FTX’s Bahamas unit, Ryan Salame, pleaded guilty to criminal charges related to the collapse of the cryptocurrency exchange. The matter is described in the statement by authorities.

The charges concern conspiracy to make illegal political donations and conspiracy to operate an unlicensed money-transmission business.

At the hearing, the former head of the Bahamas unit told Judge Lewis Kaplan that he made political donations in his own name “in support of initiatives put forward by others but backed by Sam Bankman-Fried” (SBF). According to him, the funds were provided from Alameda Research and “were classified as loans”.

“Ryan Salame agreed to advance the interests of FTX, Alameda Research and his associates through an unlawful political influence campaign and through an unlicensed money-transfer business, which helped FTX grow faster, operating illegally,” said Damian Williams, the U.S. Attorney for the Southern District of New York.

In addition to the forfeiture of more than $1.5 billion under the agreement, Salame is obliged to reimburse $5.6 million. He also agreed to pay $6 million before the sentencing in March 2024. To cover this amount, the former top executive will hand over a Porsche and several real estate properties, including two houses in Massachusetts.

In November 2022—two days before FTX filed for bankruptcy—Salame, who led the Bahamas unit, warned local authorities about potential fraud. He became the fourth top executive of the exchange to plead guilty. Earlier, Caroline Ellison, the former head of Alameda Research, and Gary Wang, the exchange’s chief technology officer, agreed to cooperate with the investigation, and Nishad Singh.

Bankman-Fried was charged with 13 criminal offenses. Later the prosecutors dropped the charge of financing some politicians as part of a deal with the defense.

The founder of FTX did not plead guilty to any of the counts, including the bribery of a Chinese official.

In August 2023, the court revoked his bail and ordered SBF held in custody until October.