US Prosecutors Accuse Former FTX Executive of Bribing Chinese Officials

On September 5, US prosecutors submitted a memorandum to the Southern District Court of New York, revealing that Ryan Salame, a former executive at the bankrupt cryptocurrency exchange FTX, is allegedly involved in bribing Chinese officials. This information was disclosed during a video conference with US Assistant Prosecutors in April 2023.

CoinTelegraph reports that the memo suggests FTX's CEO, Sam Bankman-Fried (SBF), was also implicated in attempting to bribe Chinese officials to unfreeze funds related to Alameda Research, a sister company of FTX. The prosecution claims that Salame was part of this bribery scheme, using the identity of a Thai woman to open accounts for this purpose.

Source: CoinTelegraph

Read more: FTX to Distribute $16 Billion to Creditors: Is a Mt. Gox-Like Selloff on the Horizon?

Salame’s Plea Withdrawal Attempt: Legal Controversies and Prosecution’s Critique

The memorandum also addresses Salame's motion to withdraw his guilty plea related to campaign finance violations. On August 29, Salame retracted his request to withdraw his plea, but Judge Lewis Kaplan has scheduled a hearing for September 12 to discuss the matter.

The prosecution criticises Salame’s plea withdrawal attempt as "shameless and self-serving," describing it as procedurally flawed and baseless. The memorandum argues that Salame’s attempt to evade sentencing for his involvement in a large-scale illegal campaign finance scheme and unlicensed money transfers is both inaccurate and deceptive.

Salame initially submitted his plea withdrawal after authorities announced an investigation into his partner, Michelle Bond, who is facing four charges related to campaign finance violations. Both Salame and Bond are currently out on bail.

During SBF trial, former Alameda CEO Caroline Ellison said her company paid $150 million in bribes to Chinese officials

During SBF's trial, former Alameda CEO Caroline Ellison testified that her company paid $150 million in bribes to Chinese officials to unlock $1 billion in frozen funds from 2021. Prosecutors have noted that Salame may have played a role in these efforts to unfreeze the assets.

Assistant Prosecutor Danielle Sassoon mentioned in the May 2023 call that evidence suggests Salame was involved in efforts to unfreeze the accounts. It is alleged that Salame used “Personally Identifiable Information” and hired a Thai woman to open cryptocurrency accounts for self-trading.

Read more: Former FTX executive Ryan Salame withdraws plea plea to criminal charges related to FTX collapse

Salame’s Sentencing and Trial Updates: 90 Months for Fraud and Upcoming Proceedings for FTX Figures

In September 2023, Salame admitted to conspiring to operate an unlicensed money transfer business and participating in campaign finance fraud. A federal judge sentenced him to 90 months in prison in May, with his trial set to continue on October 13.

Earlier in March, SBF was sentenced to 25 years in prison, though his legal team has filed an appeal. Caroline Ellison, former FTX engineering director Nishad Singh, and FTX co-founder Gary Wang have yet to be sentenced following their guilty pleas.