Former FTX executive Ryan Salame is set to make his highly anticipated appearance in Manhattan federal court on Thursday, Reuters reported, in a lawsuit that typically involves defendants reaching a plea deal. Report.
The court hearing will be presided over by U.S. District Judge Lewis Kaplan, who is also in charge of the criminal case brought by FTX founder Sam Bankman-Fried over the collapse of the cryptocurrency exchange.
Former FTX Executive Day of Reckoning
The Manhattan U.S. Attorney’s Office confirmed Salam was scheduled to appear in court at 3 p.m. Still, the details of a potential plea deal and whether Salam will cooperate with prosecutors in testifying against Bankman-Fried remain uncertain.
as to report Bitcoinist revealed on Aug. 9 that Salame had been in discussions with U.S. prosecutors about a possible guilty plea.
In addition, Salame’s former colleague Gary Wang, Caroline Ellisonand Nishad Singh have pleaded guilty to participating in an alleged multibillion-dollar fraud that led to the bankruptcy of Sam Bankman-Fried-led cryptocurrency exchange FTX collapse.
These individuals are expected to play important roles as key witnesses in the government’s case against Bankman-Fried.
Additionally, Bitcoinist reported that Federal Election Commission data showed that Salame and other FTX figures, including former Chief Regulatory Officer Daniel Friedberg, made significant donations to political campaigns.
In addition, according to Reuters, Salam became one of the largest political donors in the 2022 election cycle, donating more than $23 million to the Republican campaign.
Prosecutors later accused Bankman-Fried of using executives as straw donors to influence cryptocurrency policy in Washington, D.C.
Salame notified the Bahamas Securities Commission before FTX collapsed?
Salame worked at Ernst & Young and Circle Internet Financial before joining the exchange’s Bahamas-based FTX Digital Markets in 2021. According to the UMass Amherst website, Salaam set up a scholarship fund while at school.
Even more interestingly, according to Reuters, Salame notified the Caribbean country’s financial regulator, the Bahamas Securities Commission, days before FTX filed for bankruptcy and Bankman-Fried resigned as CEO.
He told them that client assets held at FTX Digital Markets may have been transferred to Alameda. The disclosure was made by regulators in court filings.
Developments surrounding the FTX case have drawn heightened attention to the increased scrutiny the cryptocurrency industry faces.
The case highlights the need for greater transparency and accountability within the crypto ecosystem as regulators tighten their grip on the industry.
The outcome of Salam’s court appearance and the potential impact on Bankman Fried and the wider industry will be closely watched by industry players and regulators.
Featured image from iStock, chart from TradingView.com