Former FTX Executive Salame Challenges Plea Deal, Claims Prosecutors Reneged on Agreement
Former FTX executive Ryan Salame has filed a motion seeking to void his guilty plea or block the indictment of his partner, Michelle Bond, alleging that federal prosecutors failed to honor an agreement made during plea negotiations. This development adds a new twist to the ongoing legal fallout from the collapse of the cryptocurrency exchange FTX.
Salame, who pleaded guilty to campaign finance violations and operating an unlicensed money transmitter in September 2023, claims that prosecutors implied they would cease investigating Bond if he agreed to plead guilty. However, Salame’s lawyers now argue that the government has resumed its probe into Bond’s alleged campaign finance violations related to her unsuccessful 2022 congressional run.
The motion, filed in a New York federal court, contends that the government’s tactics during plea negotiations were “improper” and “coercive.” Salame’s legal team is requesting that the court either enforce the alleged agreement by dismissing any charges against Bond or allow Salame to withdraw his guilty plea.
Prosecutors from the Manhattan U.S. Attorney’s Office have strongly refuted Salame’s claims, describing them as “false and incomplete.” They maintain that Salame was explicitly informed that his plea would not halt the investigation into Bond’s conduct.
This legal dispute comes as Salame prepares to begin serving a 7.5-year prison sentence in October for his role in FTX’s illegal activities. Unlike some other former FTX executives, Salame did not cooperate with prosecutors or testify against FTX founder Sam Bankman-Fried, who was sentenced to 25 years in prison earlier this year.
The case highlights the complex legal maneuvering surrounding the FTX collapse and raises questions about the nature of plea negotiations in high-profile financial crime cases. As the court considers Salame’s motion, the outcome could have significant implications for both his conviction and the ongoing investigation into Bond’s campaign activities.
A hearing on Salame’s motion is scheduled for September 12, where both sides will present their arguments before the judge makes a decision on whether to uphold the plea deal or grant Salame’s request for relief.
