Former FTX executive Ryan Salame pleaded guilty to federal conspiracy charges as pressure mounts against disgraced founder of the failed cryptocurrency exchange Sam Bankman-Fried.

Salame was slapped with two conspiracy charges for making unlawful political contributions and operating an unlicensed money transmitting business. He could face a maximum of 10 years in prison.

He ran FTX’s subsidiary in the Bahamas and was a known donor to Republican politicians – and is now set to become the fourth executive to admit to criminal conduct among Bankman-Fried’s close advisers.

Salame is believed to have played a key role in the exchange’s political fundraising operations and told the court he made ‘$10 million in political contributions.’

‘I made $10 million in political contributions and called them loans, which I never intended to repay,’ he said to U.S. District Judge Lewis Kaplan.

‘This was supported by Sam Bankman-Fried. I knew it was prohibited,’ he claimed.

Former FTX executive Ryan Salame pleaded guilty to federal conspiracy charges as pressure mounts against disgraced founder of the failed cryptocurrency exchange Sam Bankman-Fried

Former FTX executive Ryan Salame pleaded guilty to federal conspiracy charges as pressure mounts against disgraced founder of the failed cryptocurrency exchange Sam Bankman-Fried

Former FTX executive Ryan Salame pleaded guilty to federal conspiracy charges as pressure mounts against disgraced founder of the failed cryptocurrency exchange Sam Bankman-Fried 

Salame joins three of Bankman-Fried’s closest colleagues Nishad Singh, Caroline Ellison and Gary Wang who all pleaded guilty to fraud charges and agreed to cooperate against him.

Salame was reportedly in talks with prosecutors over a plea deal in the case for several weeks and FBI agents searched his house in Washington D.C. earlier this year.

Judge Kaplan said: ‘Under this plea agreement, you are waiving any right to appeal any sentence below the stipulated guideline of 120 months,’ to which Salame said ‘yes.’

The former exec is expected back in court for sentencing in March 2024.

The move has put legal pressure on Bankman-Fried who has been charged with fraud over the collapse of FTX and come less than a month before he’s set to stand trial on Oct 3. He has pleaded not guilty. 

Prosecutors have accused Bankman-Fried of misusing FTX customer funds for personal expenses, high risk bets through affiliated hedge fund Alameda Research and political donations meant to influence crypto regulation.

Ryan Salame, was slapped with two conspiracy charges for making unlawful political contributions and operating an unlicensed money transmitting business. He could face a maximum of 10 years in prison

Ryan Salame, was slapped with two conspiracy charges for making unlawful political contributions and operating an unlicensed money transmitting business. He could face a maximum of 10 years in prison

Ryan Salame, was slapped with two conspiracy charges for making unlawful political contributions and operating an unlicensed money transmitting business. He could face a maximum of 10 years in prison

Salame had been part of Bankman-Fried’s inner circle and prosecutors allege that he used him and other executives as straw donors – which is when someone illegally uses another person’s money to make political contributions.

It remains unclear whether Salame will testify against Bankman-Fried but prosecutors hope the plea will add another layer to the case against the failed FTX founder.

The accused fraudster was under house arrest at his parents’ home in Palo Alto, California, since his December extradition from the Bahamas.

His $250 million bail package, which was the most expensive in US history, severely restricted his internet and phone usage.

Bankman-Fried is being held in the notorious MDC, which previously held high profile individuals including R. Kelly, Ghislaine Maxwell and Martin Shkreli.

The Metropolitan Detention Center houses more than 1,600 inmates and is situated near the waterfront in Sunset Park, Brooklyn.

Other inmates have been linked to high-profile drug trafficking and terrorism cases, while others are comparatively anonymous New Yorkers awaiting trial.

In 2019, the prison made headlines after inmates suffered days without heat or power during a cold snap.

On Wednesday, Bankman-Fried lost an appeal asking to be released from the Brooklyn jail complaining he cannot properly prepare for his trial.

In rejecting Bankman-Fried’s request to be freed before his criminal trial, the 2nd U.S. Circuit Court of Appeals in Manhattan said it would ask the next available three-judge panel to consider it.

U.S. District Judge Lewis Kaplan on Aug. 11 revoked Bankman-Fried’s $250 million bail after finding that the former billionaire likely tampered with witnesses at least twice.

Bankman-Fried’s lawyers had claimed he was being fed a ‘flesh diet’ and forced to make do with bread, water and peanut butter.

His legal team also complained that the crypto whizz kid, who appeared in Manhattan Federal court was unable to prepare without his correct medication.

Lawyers for Bankman-Fried argued that he needed access to computers and medication to prepare properly.

Nishad Singh

Nishad Singh

Gary Wang

Gary Wang

Salame joins three of Bankman-Fried’s closest colleagues Nishad Singh, Caroline Ellison and Gary Wang who all pleaded guilty to fraud charges and agreed to cooperate against him

Salame had been part of Bankman-Fried's inner circle and prosecutors allege that he used him and other executives as straw donors - which is when someone illegally uses another person's money to make political contributions

Salame had been part of Bankman-Fried's inner circle and prosecutors allege that he used him and other executives as straw donors - which is when someone illegally uses another person's money to make political contributions

Salame had been part of Bankman-Fried’s inner circle and prosecutors allege that he used him and other executives as straw donors – which is when someone illegally uses another person’s money to make political contributions

He was previously granted access to Adderall, after his lawyers told the court that he would take 10mg tablets three to four times a day for his ADHD.

Bankham-Fried was also allowed ‘uninterrupted access’ access to his Emsam prescription for depression by Kaplan on August 14.

But just eight days later, his attorneys have complained he has not been given access to the drugs.

Prosecutors pushed for Bankman-Fried to be jailed after he shared the personal writings of Caroline Ellison, Alameda’s former chief executive and his onetime romantic partner, with a New York Times reporter.

Prosecutors pushed for Bankman-Fried to be jailed after he shared the personal writings of Caroline Ellison, Alameda's former chief executive and his onetime romantic partner, with a New York Times reporter

Prosecutors pushed for Bankman-Fried to be jailed after he shared the personal writings of Caroline Ellison, Alameda's former chief executive and his onetime romantic partner, with a New York Times reporter

Prosecutors pushed for Bankman-Fried to be jailed after he shared the personal writings of Caroline Ellison, Alameda’s former chief executive and his onetime romantic partner, with a New York Times reporter

Bankman-Fried has pleaded not guilty to fraud and conspiracy charges, and said he shared Ellison’s writings to defend his reputation, not to intimidate her.

Ellison, who ran Alameda Research, a cryptocurrency trading hedge fund that was one of his businesses, is expected to testify against her former lover at trial.

The judge said the writings were kinds of things that a former romantic partner was unlikely to share with anyone ‘except to hurt, discredit, and frighten the subject of the material.’

Prosecutors say that the memo Ellison wrote will be used against Bankman-Fried in the trial, as well as testimony from members of his inner circle.

She described being racked with self-doubt over her decision making, with one message reading: ‘At the end of the day I can’t wait to go home and turn off my phone and have a drink and get away from it all.’

The state said it planned to use a memo she wrote after one conversation with him titled ‘Things Sam Is Freaking Out About.’

A 70-page court document included a trove of financial records, political donations and private Slack messages.

In court papers on Tuesday, Bankman-Fried’s lawyers said the arrangement to give him several hours a day to review evidence on a laptop at the Metropolitan Detention Center in Brooklyn has proven inadequate.

They said he lost more than four hours on Friday when he had to return to his cell for a prisoner count, and lost more time over the weekend.

The U.S. Attorney’s office in Manhattan said the jail has authorized Bankman-Fried’s purchase of a second laptop.

Source: | This article originally belongs to Dailymail.co.uk

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