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Prosecutors Deny Breaching Plea Deal with FTX’s Salame

Ryan Salame Ftx

U.S. prosecutors claim they did not violate a plea agreement reached with former FTX CEO Ryan Salame and did not guarantee future prosecutions against his partner, Michelle Bond, in the most recent court filing.

Last month, Salame accused the government of misbehavior. He sought a New York court to either void his conviction verdict or dismiss any indictment of Bond for campaign money violations.

Previously co-CEO of FTX Digital Markets, Salame admitted in September to conspiring to operate an unregistered money-transmitting company and to make illegal political contributions. His lawyer asked him to postpone his appearance for his seven and a half-year sentence to October 13 so he could have urgent surgery following a dog attack, which was approved. Originally scheduled for August 29.

Later last month, Bond was indicted and accused of financing her race for a U.S. House of Representatives seat in New York in 2022 with “illicitly obtained funds.”

Salame said earlier that plea discussions were used by prosecutors to “threaten” his partner and mother of his eight-month-old kid, adding he entered a guilty plea only on the understanding the government would stop looking into Bond.  On Thursday, prosecutors said they regularly stressed with Salame’s attorneys that his guilty plea would not stop any current Bond probe.

Prosecutors stated in a court document on Thursday, “Salame’s claim that the Government breached the plea agreement is wrong on the facts and the law. Factually, the sequence of events establishes not only that the plea agreement contained neither any promises about the investigation of Bond, but also that the plea agreement was consistent with the parties’ plea discussions: the Government made clear in advance of the plea agreement that it viewed Salame and Bond and the Government’s investigations into each as separate, and that any disposition as to Salame would not conclude the investigation of Bond.” 

Notes gathered by investigators in April 2023 revealed additional specifics of Salame’s claimed misbehavior while at FTX. Prosecutors said Salame “supervised efforts to pay bribes to immigration authorities.” 

Prosecutors claimed Salame neglected to bring forward his allegations prior to his sentence.

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“Despite being well aware of the continuous Bond investigation prior to his sentence, Salame did not raise his current claims prior to sentence, when he could have sought relief prior to judgment being entered, nor did he raise them at sentence, including prior to learning what his sentence would be,” the filing states. “And he did not appeal at all, much less claim that the Government broke the plea agreement or that the plea was unknowing and involuntary.”

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