FTX Exec Salame Fights Conviction Over Alleged Broken Deal

Former FTX executive Ryan Salame is asking a U.S. judge to reconsider his conviction, claiming federal prosecutors broke their promise to stop investigating his partner, Michelle Bond. Salame argues that this breach of agreement should prevent any further charges against Bond, highlighting tensions over the plea deal he accepted.

Salame’s legal team asserts that the government failed to keep its word by continuing to investigate Bond, a former congressional candidate and mother of his child, after he agreed to plead guilty. According to the court filing, prosecutors used the investigation into Bond to pressure Salame into taking the plea deal, believing it would protect her from further scrutiny.

The documents reveal that Salame’s lawyers are challenging the government’s actions, claiming prosecutors are now pursuing an indictment against Bond despite the alleged promise. However, the U.S. Attorney’s Office denies these claims, calling them inaccurate and self-serving, and insists that Salame was told his plea wouldn’t stop the investigation into Bond.

Salame’s attorneys have brought their concerns to the U.S. Southern District Court of New York, seeking relief due to what they describe as questionable tactics used to secure Salame’s guilty plea. They argue that there are serious legal issues regarding how the prosecutors pressured Salame into pleading guilty.

This legal dispute arises as Salame prepares to start his prison sentence later this year. He was sentenced to 90 months in prison after being convicted of conspiracy to make illegal political contributions and defrauding the Federal Election Commission. He was also found guilty of operating an unlicensed money transmitter business related to his role at FTX, the collapsed cryptocurrency exchange.

Salame’s plea deal was part of a larger investigation into FTX, which fell apart in November 2022 amid widespread fraud allegations. Unlike other FTX executives, Salame did not cooperate with prosecutors, while key figures like Caroline Ellison, Nishad Singh, and Gary Wang testified against FTX founder Sam Bankman-Fried.

Bankman-Fried, found guilty of orchestrating one of the largest financial frauds in history, was sentenced to 25 years in prison in March. His conviction was the climax of a scandal that rocked the cryptocurrency world, exposing the risks and flaws in digital asset management and exchanges.

Salame’s attempt to overturn his conviction by arguing the government acted in bad faith adds another layer to the FTX collapse saga. If successful, it could set a legal precedent affecting how plea agreements are handled and could impact the ongoing investigation into Bond.

As Salame awaits the court’s decision, this case highlights the broader legal and ethical challenges that have emerged from FTX’s downfall. The outcome could have significant implications for everyone involved, particularly in the rapidly changing landscape of cryptocurrency regulation and law enforcement.