Judge Threatens Sanctions Against Former FTX Exec Ryan Salame for Alleged False Testimony
In a dramatic turn of events at the U.S. District Court in Manhattan on September 12, 2024, Judge Lewis Kaplan threatened to impose sanctions on former FTX executive Ryan Salame for allegedly lying during his guilty plea last year. The hearing, which was initially scheduled to address Salame’s attempt to withdraw his guilty plea, took an unexpected direction as the judge accused the defendant of providing false testimony.
Salame, who previously served as co-CEO of FTX Digital Markets, had pleaded guilty in September 2023 to campaign finance violations and operating an unlicensed money transmitting business. He was subsequently sentenced to 7.5 years in prison. However, last month, Salame’s legal team filed a motion to void his guilty plea, claiming that prosecutors had promised to drop a criminal investigation into his partner, Michelle Bond, in exchange for his plea – a claim that prosecutors vehemently denied.
During Thursday’s hearing, Judge Kaplan grilled Salame for over 30 minutes, focusing on the discrepancy between his statements during the plea hearing and his recent claims. Salame admitted to lying during his plea allocution when he stated that no promises had been made to induce his guilty plea.
“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,” Judge Kaplan told Salame. “And that might be a big problem.”
The judge’s frustration was palpable as he repeatedly emphasized that Salame had “induced” him to accept the guilty plea based on false information. This development raises questions about the validity of Salame’s conviction and sentence, potentially opening the door for further legal complications.
Adding to the complexity of the situation, Salame had recently attempted to withdraw his motion to vacate the plea deal, following the indictment of Michelle Bond on campaign finance charges related to her unsuccessful 2022 congressional run. However, Judge Kaplan refused to accept this withdrawal, insisting on holding the hearing to address the allegations of false testimony.
As the court weighs its next steps, Judge Kaplan has moved up Salame’s prison reporting date to October 11, 2024. The judge stated that he would need time to consider the appropriate course of action, which could potentially include revoking Salame’s plea or imposing sanctions on both Salame and his legal team.
This latest development adds another layer of intrigue to the ongoing fallout from the FTX collapse, highlighting the complex web of legal and ethical issues surrounding the case. As the cryptocurrency industry continues to grapple with regulatory challenges and high-profile legal battles, the outcome of Salame’s case could have far-reaching implications for future prosecutions in the sector.
