A close associate of Sam Bankman-Fried is reportedly negotiating with federal prosecutors to plead guilty to criminal charges stemming from the collapse of digital asset exchange FTX.
Bloomberg, citing “people familiar with the matter,” reports that former FTX Digital Markets co-leader Ryan Salame, one of the Republican Party’s largest political donors in the latest midterm elections, could make a plea as early as next month for crimes that include campaign finance law violations.
Details of a potential plea deal have not yet been finalized. It’s also not certain if Salame will sign a cooperative agreement with prosecutors to testify against Bankman-Fried, but he could be the fourth FTX executive to plead guilty to one of the largest financial frauds in U.S. history.
Former executives Gary Wang, Caroline Ellison and Nishad Singh have already admitted their roles in the FTX scheme and will be key witnesses against Bankman-Fried, who faces trial in October for diverting billions of client funds to trading firm Alameda Research.
Salame received tens of millions of dollars in loans from Alameda before the FTX crypto empire imploded last year. If his plea deal with the government goes through, he risks losing the private jet he bought while working at the now-defunct exchange.
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