In a dramatic hearing on Thursday, a federal judge expressed his anger at former FTX executive Ryan Salame, threatening sanctions for what he described as false testimony during Salame’s guilty plea last year. This significant development unfolded in the US District Court in Manhattan, where Judge Lewis Kaplan addressed Salame’s claims that federal prosecutors had made promises to him regarding his plea agreement.
FTX Executive’s Guilty Plea Under Scrutiny
In 2023, Ryan Salame initially pleaded guilty to campaign finance and money transmission violations, asserting that prosecutors had not offered him any inducements. However, during Thursday’s hearing, Salame contradicted that statement, claiming that prosecutors had assured him through his former attorneys that they would drop a criminal investigation into his romantic partner, Michelle Bond, if he agreed to plead guilty. Judge Kaplan, visibly frustrated, stated, “You are asking me to let stand a conviction and sentence that I now know is based on false testimony before me in the plea allocution.”
Kaplan emphasized the importance of truthfulness during plea hearings, noting that defendants must disclose any promises made to them in exchange for their guilty pleas. “Salame induced me to accept his guilty plea,” the judge repeated, clarifying that this situation could have serious implications for Salame’s case.
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Judge Threatens Sanctions Over False Testimony
As the hearing unfolded, Kaplan indicated that he would take time to consider appropriate actions against Salame, including the possibility of sanctions. Salame’s legal team had previously sought to void his 2023 guilty plea, claiming that prosecutors had failed to uphold their end of the agreement regarding Bond.
Salame’s lawyers alleged that despite assurances made in April 2023, the investigation into Bond for campaign finance violations continued, culminating in her indictment shortly after. Bond faces charges related to her congressional campaign in 2022, with prosecutors asserting that she conspired to raise “illegal campaign contributions” from the defunct FTX exchange. The indictment includes allegations that Salame facilitated these actions by wiring substantial amounts of money to Bond’s account, which she allegedly used to fund her campaign unlawfully.
Following Bond’s indictment, Salame sought to withdraw his motion to vacate his guilty plea, stating during the hearing that he no longer wished to pursue this course of action. Judge Kaplan then ordered Salame to report to prison by October 11, adjusting the original surrender date.
Implications for the Broader Crypto Market
At the time of writing, FTX’s native token FTT is trending upwards, trading at $1.311, up 1.4% in the 24-hour time frame. This positive movement comes as the broader crypto market approaches recovery, hinting at potential market stabilization despite the ongoing legal turmoil.
The unfolding events surrounding Salame’s case underscore the importance of transparency and honesty in legal proceedings, particularly within the high-stakes environment of financial crimes and cryptocurrency regulations. As the situation develops, it will be crucial to observe how the legal ramifications impact both Salame’s future and the broader crypto landscape.
Stay tuned for more updates on this evolving story.
