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Ex-FTX executive linked to Chinese bribery scandal by US prosecutors

GrafaGrafa2024/09/06 01:15
By:Mahathir Bayena

U.S. prosecutors have allegedly tied former FTX Digital Markets co-CEO Ryan Salame to a bribery scheme involving Chinese officials, according to notes from a 2023 conference call with Assistant U.S. Attorneys. 

The revelations were part of a Sept. 5 filing in the U.S. District Court for the Southern District of New York, where prosecutors opposed Salame's attempt to vacate his guilty plea related to campaign finance violations. 

The filing describes Salame’s petition as “shameless and self-serving” and states that it is “procedurally defective and factually and legally meritless.” 

Salame had previously sought to withdraw his plea after U.S. authorities suggested they might investigate his partner, Michelle Bond. 

However, the motion was dropped on Aug. 29, and a hearing is set for Sept. 12 to address the matter. 

Prosecutors allege that Salame was involved in efforts to unfreeze accounts tied to FTX (CRYPTO:FTT) and Alameda Research by using the identities of Thai prostitutes. 

Assistant U.S. Attorney Danielle Sassoon mentioned evidence that “Salame was involved in efforts to unfreeze the accounts, including by opening crypto accounts to enable self-trading.” 

These accounts were reportedly opened using the Personally Identifiable Information (PII) of individuals identified as Thai prostitutes. 

The bribery scheme traces back to an incident involving former Alameda CEO Caroline Ellison, who testified that the firm paid a $150 million bribe to Chinese officials to unlock $1 billion in frozen funds on Huobi and OKX accounts. 

Prosecutors believe Salame played a role in these actions. 

Salame pleaded guilty to charges of conspiracy to operate an unlicensed money transmitting business and campaign finance fraud in September 2023. 

He was sentenced to 90 months in prison and is scheduled to begin his sentence on Oct. 13. 

Meanwhile, FTX co-founder Sam Bankman-Fried and other former executives face ongoing legal battles, with varying outcomes expected for each. 

At the time of writing, the FTX (FTT) price was $1.31.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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